Exercise 9-9 (Static) Planning Budget [LO9-1] 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: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent Fixed Cost per Month $ 1,200 $5,000 $ 6,000 $ 8,000 $ 4,000 Cost per Car Washed $ 0.80 $ 0.15 $ 0.20 $ 0.30 $ 0.10 For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed. Required: Prepare the company's planning budget for August.
Exercise 9-9 (Static) Planning Budget [LO9-1] 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: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent Fixed Cost per Month $ 1,200 $5,000 $ 6,000 $ 8,000 $ 4,000 Cost per Car Washed $ 0.80 $ 0.15 $ 0.20 $ 0.30 $ 0.10 For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 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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![Exercise 9-9 (Static) Planning Budget [LO9-1]
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:
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Administrative expenses
Rent
Fixed
Cost per
Month
$ 1,200
$5,000
$ 6,000
$8,000
$ 4,000
Cost per
Car Washed
$0.80
$ 0.15
$ 0.20
$0.30
$ 0.10
For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in
August and to collect an average of $4.90 per car washed.
Required:
Prepare the company's planning budget for August.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F402bf941-d3f7-4808-b2e4-e1665f3ab0a6%2F8b9c76cf-86d6-45b3-98e9-1d3429bc7c2e%2Foa8wgh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 9-9 (Static) Planning Budget [LO9-1]
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:
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Administrative expenses
Rent
Fixed
Cost per
Month
$ 1,200
$5,000
$ 6,000
$8,000
$ 4,000
Cost per
Car Washed
$0.80
$ 0.15
$ 0.20
$0.30
$ 0.10
For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in
August and to collect an average of $4.90 per car washed.
Required:
Prepare the company's planning budget for August.
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