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: Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Administrative expenses Rent Fixed Cost per Cost per Car Washed Month $ 1,300 $ 4,500 $ 8,300 $ 1,800 $1,400 $0.80 $ 0.09 $0.30 $0.40 $ 0.04 For example, electricity costs should be $1,300 per month plus $0.09 per car washed. The company actually washed 8,600 cars in August and collected an average of $6.80 per car washed.
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: Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Administrative expenses Rent Fixed Cost per Cost per Car Washed Month $ 1,300 $ 4,500 $ 8,300 $ 1,800 $1,400 $0.80 $ 0.09 $0.30 $0.40 $ 0.04 For example, electricity costs should be $1,300 per month plus $0.09 per car washed. The company actually washed 8,600 cars in August and collected an average of $6.80 per car washed.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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:
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Administrative expenses
Rent
Fixed
Cost per
Month
$ 1,300
$ 4,500
$ 8,300
$ 1,800
$1,400
Cost per
Car Washed
$ 0.80
$0.09
$0.30
$0.40
$ 0.04
For example, electricity costs should be $1,300 per month plus $0.09 per car washed. The company actually washed 8,600 cars in
August and collected an average of $6.80 per car washed.
Required:
Prepare the company's flexible budget för August.
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