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: Cost per Car Washed 0.60 0.08 0.15 0.20 Fixed Cost per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses 1,000 4,900 8,100 1,800 1,700 0.03 For example, electricity costs are $1,000 per month plus $0.08 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.60 per car washed Required Prepare the company's planning budget for August. Lavage Rapide Planning Budget For the Month Ended August 31

Explanation / Answer

Planning budget :

Revenue 53460 expense Cleaning supplies 4860 Electricity 1648 maintenance 1215 Wages and salaries 6520 depreciation 8100 Rent 1800 Administrative expense 1943 Total expense 26086 Net operating income 27374

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