?? UTSA Transcripts -SAM-Activity List The Roar l Podcast | Fantasy Baseball 2 #

Question

?? UTSA Transcripts -SAM-Activity List The Roar l Podcast | Fantasy Baseball 2 # Inspect 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 Cost per per Month Car Washed Cleaning supplies Electricity Maintenance Wages and salaries 0.70 0.09 0.20 $ 0.20 $1,200 4,300 $8,300 $1,900 Rent Administrative expenses $ 1,800 0.04 For example, electricity costs are $1.200 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.20 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 Wages and salaries Deprecia Rent Administrative expenses Total expense

Explanation / Answer

Lavage Rapide Planning Budget For the Month Ended August 31 Revenue (8,400*$6.20) $ 52,080 Expenses: Cleaning supplies (8,400*$0.70) $    5,880 Electricity ($1,200+(8,400*$0.09)) $    1,956 Maintenance (8,400*$0.20) $    1,680 Wages and salaries ($4,300+(8,400*$0.20) $    5,980 Depreciation $    8,300 Rent $    1,900 Administrative expenses ($1,800+(8,400*$0.04) $    2,136 Total expenses $ 27,832 Net operating income $ 24,248

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