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 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses per Month Washed $ 0.60 $ 1,200 $ 0.07 $ 0.15 $ 4,000 $ 0.20 $ 8,100 $ 1,900 $ 1,400 $ 0.01 For example, electricity costs are $1,200 per month plus $0.07 per car washed. The company actually washed 8,100 cars in August and collected an average of $6.80 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 data concerning the company's costs: Fixed Cost Cost per Car Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses per Month Washed $ 0.60 $ 1,200 $ 0.07 $ 0.15 $ 4,000 $ 0.20 $ 8,100 $ 1,900 $ 1,400 $ 0.01 For example, electricity costs are $1,200 per month plus $0.07 per car washed. The company actually washed 8,100 cars in August and collected an average of $6.80 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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