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 $ 1,200 Cleaning supplies Electricity Maintenance $4,500 $ 8,200 $ 2,200 $ 1,600 $0.40 $ 0.05 $ 0.20 $ 0.30 Wages and salaries. Depreciation Rent Administrative expenses $ 0.02 For example, electricity costs should be $1,200 per month plus $0.05 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.40 per car washed.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Dd.35.

 

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
$ 1,200
$ 4,500
$ 8,200
Cleaning supplies
Electricity
Maintenance
Wages and salaries.
Depreciation
Rent
$ 2,200
$ 1,600
$0.40
$ 0.05
$ 0.20
$ 0.30
Administrative expenses
$ 0.02
For example, electricity costs should be $1,200 per month plus $0.05 per car washed. The company expects to wash
8,300 cars in August and to collect an average of $6.40 per car washed.
Required:
Prepare the company's planning budget for August.
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 $ 1,200 $ 4,500 $ 8,200 Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Rent $ 2,200 $ 1,600 $0.40 $ 0.05 $ 0.20 $ 0.30 Administrative expenses $ 0.02 For example, electricity costs should be $1,200 per month plus $0.05 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.40 per car washed. Required: Prepare the company's planning budget for August.
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