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 Cost per Car Washed Month $ 1,400 $ 4,500 $ 8,100 $ 1,900 $ 1,400 $0.50 $ 0.08 $0.10 $ 0.40 $ 0.03 For example, electricity costs should be $1,400 per month plus $0.08 per car washed. The company actually washed 8,400 cars in August and collected an average of $6.60 per car washed. Required: Prepare the company's flexible 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: Cleaning supplies Electricity Maintenance. Wages and salaries Depreciation Administrative expenses Rent Fixed Cost per Cost per Car Washed Month $ 1,400 $ 4,500 $ 8,100 $ 1,900 $ 1,400 $0.50 $ 0.08 $0.10 $ 0.40 $ 0.03 For example, electricity costs should be $1,400 per month plus $0.08 per car washed. The company actually washed 8,400 cars in August and collected an average of $6.60 per car washed. Required: Prepare the company's flexible budget for August.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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
Rent
Administrative expenses
Fixed
Cost per
Month
$1,400
$ 4,500
$ 8,100
$ 1,900
$1,400
Cost per
Car Washed
$0.50
$0.08
$ 0.10
$ 0.40
$ 0.03
For example, electricity costs should be $1,400 per month plus $0.08 per car washed. The company actually washed 8,400 cars in
August and collected an average of $6.60 per car washed.
Required:
Prepare the company's flexible budget for August.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1c3ba5ed-c0b2-4428-977f-9a55cc035c09%2F0c6f4302-231e-493a-8a78-7aa268528fdb%2Fyr6y7am_processed.jpeg&w=3840&q=75)
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:
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses
Fixed
Cost per
Month
$1,400
$ 4,500
$ 8,100
$ 1,900
$1,400
Cost per
Car Washed
$0.50
$0.08
$ 0.10
$ 0.40
$ 0.03
For example, electricity costs should be $1,400 per month plus $0.08 per car washed. The company actually washed 8,400 cars in
August and collected an average of $6.60 per car washed.
Required:
Prepare the company's flexible budget for August.
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