Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month Cost per Car Washed $ 0.50 $ 1,000 $ 0.06 $ 0.20 $ 4,200 $ 0.40 $ 8,300 $ 1,900 $ 1,300 $ 0.04 For example, electricity costs are $1,000 per month plus $0.06 per car washed. The company actually washed 8,400 cars in August and collected an average of $6.70 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 data concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month Cost per Car Washed $ 0.50 $ 1,000 $ 0.06 $ 0.20 $ 4,200 $ 0.40 $ 8,300 $ 1,900 $ 1,300 $ 0.04 For example, electricity costs are $1,000 per month plus $0.06 per car washed. The company actually washed 8,400 cars in August and collected an average of $6.70 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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Question
![Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table
provides data concerning the company's costs:
Fixed Cost
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses
per Month
Cost per
Car Washed
$ 0.50
$ 1,000
$ 0.06
$ 0.20
$ 4,200
$ 0.40
$ 8,300
$ 1,900
$ 1,300
$ 0.04
For example, electricity costs are $1,000 per month plus $0.06 per car washed. The company actually washed 8,400 cars in August
and collected an average of $6.70 per car washed.
Required:
Prepare the company's flexible budget for August.
Lavage Rapide
Flexible Budget
For the Month Ended August 31
Actual cars washed
Revenue
Expenses:
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses
8,400
Total expense
0
Net operating income
$
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff03b445e-0439-4bfe-9640-d5c6a554d118%2F1b1d6606-ad33-4bee-8084-5720ccebfcf3%2Fj32ef5_processed.png&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 data concerning the company's costs:
Fixed Cost
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses
per Month
Cost per
Car Washed
$ 0.50
$ 1,000
$ 0.06
$ 0.20
$ 4,200
$ 0.40
$ 8,300
$ 1,900
$ 1,300
$ 0.04
For example, electricity costs are $1,000 per month plus $0.06 per car washed. The company actually washed 8,400 cars in August
and collected an average of $6.70 per car washed.
Required:
Prepare the company's flexible budget for August.
Lavage Rapide
Flexible Budget
For the Month Ended August 31
Actual cars washed
Revenue
Expenses:
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses
8,400
Total expense
0
Net operating income
$
0
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