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: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent Fixed Cost Cost per Car per Month Washed $ 0.70 $ 1,100 $ 0.08 $ 4,200 $ 8,200 $ 2,200 $ 1,700 $ 0.10 $ 0.20 Required: Prepare the company's planning budget for August. $ 0.02 For example, electricity costs are $1,100 per month plus $0.08 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.70 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 data concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent Fixed Cost Cost per Car per Month Washed $ 0.70 $ 1,100 $ 0.08 $ 4,200 $ 8,200 $ 2,200 $ 1,700 $ 0.10 $ 0.20 Required: Prepare the company's planning budget for August. $ 0.02 For example, electricity costs are $1,100 per month plus $0.08 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.70 per car washed.
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 data concerning the company's costs:
Cleaning supplies
Electricity
Maintenance
Rent
Wages and salaries
Depreciation
Administrative expenses
$ 0.02
For example, electricity costs are $1,100 per month plus $0.08 per car washed. The company expects to wash 8,100 cars in August and
to collect an average of $6.70 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
Fixed Cost Cost per Car
per Month
Washed
$ 1,100
$ 4,200
$ 8,200
$ 2,200
$ 1,700
Wages and salaries
Depreciation
Rent
Administrative expenses
Total expense
Net operating income
$ 0.70
$ 0.08
$0.10
$ 0.20
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