Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Fixed Cost Cost per per Month Car Washed $ 0.60 $ 0. 06 $ 0.20 $ 0.40 Cleaning supplies Electricity Maintenance $ 1,100 Wages and salaries Depreciation Rent $ 4,600 $ 8,000 $ 2,200 $ 1,500 Administrative expenses $ 0.04 For example, electricity costs should be $1,100 per month plus $0.06 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.00 per car washed. Required: Prepare the company's planning budget for August.
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Fixed Cost Cost per per Month Car Washed $ 0.60 $ 0. 06 $ 0.20 $ 0.40 Cleaning supplies Electricity Maintenance $ 1,100 Wages and salaries Depreciation Rent $ 4,600 $ 8,000 $ 2,200 $ 1,500 Administrative expenses $ 0.04 For example, electricity costs should be $1,100 per month plus $0.06 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.00 per car washed. Required: Prepare the company's planning budget for August.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table
provides estimates concerning the company's costs:
Fixed Cost
Cost per
Car Washed
$ 0. 60
$ 0.06
$ 0. 20
$ 0.40
per Month
Cleaning supplies
Electricity
$ 1,100
Maintenance
$ 4,600
$ 8,000
$ 2,200
$ 1,500
Wages and salaries
Depreciation
Rent
Administrative expenses
$ 0.04
For example, electricity costs should be $1,100 per month plus $0.06 per car washed. The company expects to wash 8,300 cars in
August and to collect an average of $6.00 per car washed.
Required:
Prepare 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
Total expense
Net operating income
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