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 per Month Cost per Car Washed Cleaning supplies $ 0.50 Electricity $ 1,400 $ 0.10 Maintenance $ 0.30 Wages and salaries $ 4,500 $ 0.30 Depreciation $ 8,500 Rent $ 2,200 Administrative expenses $ 1,600 $ 0.02 For example, electricity costs should be $1,400 per month plus $0.10 per car washed. The company actually washed 8,200 cars in August and collected an average of $6.50 per car washed. Required: Prepare the company's flexible budget for August. Lavage Rapide Flexible 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
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 per Month Cost per Car Washed Cleaning supplies $ 0.50 Electricity $ 1,400 $ 0.10 Maintenance $ 0.30 Wages and salaries $ 4,500 $ 0.30 Depreciation $ 8,500 Rent $ 2,200 Administrative expenses $ 1,600 $ 0.02 For example, electricity costs should be $1,400 per month plus $0.10 per car washed. The company actually washed 8,200 cars in August and collected an average of $6.50 per car washed. Required: Prepare the company's flexible budget for August. Lavage Rapide Flexible 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
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 per
Month
Cost per
Car Washed
Cleaning supplies
$ 0.50
Electricity
$ 1,400
$ 0.10
Maintenance
$ 0.30
Wages and salaries
$ 4,500
$ 0.30
Depreciation
$ 8,500
Rent
$ 2,200
Administrative expenses
$ 1,600
$ 0.02
For example, electricity costs should be $1,400 per month plus $0.10 per car washed. The company actually
washed 8,200 cars in August and collected an average of $6.50 per car washed.
Required:
Prepare the company's flexible budget for August.
Lavage Rapide
Flexible 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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