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 per Cost Car Washed per Month $ 0.70 Cleaning supplies Electricity $1,300 $0.09 Maintenance $0.15 $ 4,800 $8,400 $2,100 $1,700 Wages and salaries Depreciation $0.30 Rent Administrative expenses $ 0.02 For example, electricity costs are $1,300 per month plus $0.09 per car washed. The company actually washed 8,500 cars in August and collected an average of $6.40 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 per Cost Car Washed per Month $ 0.70 Cleaning supplies Electricity $1,300 $0.09 Maintenance $0.15 $ 4,800 $8,400 $2,100 $1,700 Wages and salaries Depreciation $0.30 Rent Administrative expenses $ 0.02 For example, electricity costs are $1,300 per month plus $0.09 per car washed. The company actually washed 8,500 cars in August and collected an average of $6.40 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 data concerning the company's costs:
Fixed
Cost per
Cost
Car Washed
per Month
Cleaning supplies
Electricity
$0.70
$1,300
$0.09
Maintenance
$ 0.15
Wages and salaries
Depreciation
$4,800
$8,400
$2,100
$1,700
$0.30
Rent
Administrative expenses
$ 0.02
For example, electricity costs are $1,300 per month plus $0.09 per car washed. The company actually washed 8,500 cars in August
and collected an average of $6.40 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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