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 Cost per Car Washed $0.50 $0.06 $0.15 $0.30 Fixed Cost per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,100 $ 4,100 $ 8,100 $1,900 $1,600 $ 0.03 For example, electricity costs are $1,100 per month plus $0.06 per car washed. The company actually washed 8,500 cars in August and expects to collect an average of $6.80 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 income

Explanation / Answer

Revenue 57800 =8500*6.8 Expenses: Cleaning supplies 4250 =8500*0.5 Electricity 1610 =1100+(8500*0.06) Maintenance 1275 =8500*0.15 Wages and salaries 6650 =4100+(8500*0.3) Depreciation 8100 Rent 1900 Administrative expenses 1855 =1600+(8500*0.03) Total expenses 25640 Net operating income 32160

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.