Lavage Rapide is a Canadian company that owns and operates a large automatic car

Question

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs Fixed Cost per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $0.70 $0.09 $0.30 0.30 $ 1,100 $4,800 $8,100 $1,900 $1,400 $0.02 For example, electricity costs are $1,100 per month plus $0.09 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.70 per car washed Required: Prepare the company's planning budget for August.

Explanation / Answer

Planning budget :

Budgeted cash washed 8100 Revenue 54270 Expense Cleaning supplies 5670 Electricity 1829 Maintenance 2430 Wages and salaries 7230 Depreciation 8100 Rent 1900 Administrative expense 1562 Total expense 28721 Net operating income 25549

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