Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility nearMontreal. The following table provides data concerning the company’s costs:Fixed Cost Cost per Carper Month WashedCleaning supplies ...................... $0.80Electricity .................................. $1,200 $0.15Maintenance ............................ $0.20Wages and salaries ................. $5,000 $0.30Depreciation .............................. $6,000Rent .......................................... $8,000Administrative expenses .......... $4,000 $0.10For example, electricity costs are $1,200 per month plus $0.15 per car washed. The company expects towash 9,000 cars in August and to collect an average of $4.90 per car washed.Required:Prepare the company’s planning budget for August.
Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near
Montreal. The following table provides data concerning the company’s costs:
Fixed Cost Cost per Car
per Month Washed
Cleaning supplies ...................... $0.80
Electricity .................................. $1,200 $0.15
Maintenance ............................ $0.20
Wages and salaries ................. $5,000 $0.30
Rent .......................................... $8,000
Administrative expenses .......... $4,000 $0.10
For example, electricity costs are $1,200 per month plus $0.15 per car washed. The company expects to
wash 9,000 cars in August and to collect an average of $4.90 per car washed.
Required:
Prepare the company’s planning budget for August.
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