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 Cost per Car Washed per Month Cleaning supplies Electricity $0.40 $1,400 $0.06 Maintenance $0.20 Wages and salaries Depreciation Rent $ 4,900 $ 8,400 $ 2,000 $1,300 $0.20 Administrative expenses $0.01 For example, electricity costs are $1,400 per month plus $0.06 per car washed. The company expects to wash 8,500 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 data concerning the company's costs: Fixed Cost Cost per Car Washed per Month Cleaning supplies Electricity $0.40 $1,400 $0.06 Maintenance $0.20 Wages and salaries Depreciation Rent $ 4,900 $ 8,400 $ 2,000 $1,300 $0.20 Administrative expenses $0.01 For example, electricity costs are $1,400 per month plus $0.06 per car washed. The company expects to wash 8,500 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
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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 data concerning the company's costs:
Fixed Cost
Cost per
Car Washed
$0.40
per Month
Cleaning supplies
Electricity
$1,400
$0.06
Maintenance
$0.20
Wages and salaries
Depreciation
$ 4,900
$ 8,400
$ 2,000
$0.20
Rent
Administrative expenses
$1,300
$0.01
For example, electricity costs are $1,400 per month plus $0.06 per car washed. The company expects to wash 8,500 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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