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 carwash facility near Montreal. The following table provides data concerning the company's costs Fixed Cost per MonthCar Washed Cost per Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 0.80 0.08 $0.15 $0.40 $1,300 $ 4,300 $ 8,100 $ 2,200 $1,500 $ 0.02 For example, electricity costs are $1,300 per month plus $0.08 per car washed. The company expects to wash 8,400 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: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses lotal expense Net operating income

Explanation / Answer

Planning budget :

Revenue (8400*6.8) 57120 Expense Cleaning supplies (8400*.80) 6720 Electricity (8400*.08+1300) 1972 Maintenance (8400*.15) 1260 Wages and salaries (8400*.40+4300) 7660 Depreciation 8100 Rent 2200 Administrative expense (8400*.02+1500) 1668 Total expense 29580 Net operating income 27540

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