ezto.mhe Lavage Rapide is a Canadian company that owns and operates a large auto

Question

ezto.mhe 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: Fixed Cost per Cost Car Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $0.60 $ 0.08 $ 0.30 0.30 1,500 S 4,200 S 8,100 2,000 $ 1,700 $ 0.02 For example, electricity costs are $1,500 per month plus $0.08 per car washed. The company actualy washed 8,300 cars in August and expects to collect an average of $6.30 per car washed. Required: Complete the company's flexible budget for August. Lavage Rapide Flexible Budget For the Month Ended August 31 Revenue Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating inceme

Explanation / Answer

Flexible budget :

Revenue (8300*6.3) 52290 Expense Cleaning supplies (8300*.60) 4980 Electricity (8300*.08+1500) 2164 Maintenance (8300*.30) 2490 Wages and salaries (8300*.30+4200) 6690 Depeciation 8100 Rent 2000 Administrative expenses (8300*.02+1700) 1866 Total expense 28290 Net operating income 24000

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