C O ezto.mheduca Lavage Rapide is a Canadian company that owns and operates a la

ID: 2511192 • Letter: C

Question

C O ezto.mheduca Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company's costs Cleaning supplies Electricity Maintenance S 0.40 $1,300 006 S 025 $0 30 Wages and salaries Depreciation Rent Administrative expenses $ 4,800 S 8,100 S 2,100 1,400 $ 0.01 For example, electricity costs are $1,300 per month plus so.06 per car washed The company expects to wash 8,000 cars in August and to collect an average of $6.80 per car washed Required: Complete the company's planning budget for August Lavage Rapide Planning Budget For the Month Ended August 31 Revenue Expenses Cleanina supplies O Type here to search

Explanation / Answer

Answer:

Lavage Rapide

Planning Budget

For the Month Ended August 31

Budgeted cars washed (q)

8000

Revenue ($6.80q)

54400

Expenses:

Cleaning supplies ($0.40q)

3200

Electricity ($1,300 + $0.06q)

1780

Maintenance ($0.25q)

2000

Wages and salaries ($48000 + $0.30q)

7200

Depreciation ($8100)

8100

Rent ($2100)

2100

Administrative expenses ($4,000 + $0.10q)

1480

Total expense

25860

Net operating income

28540