Lavage Rapide 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 $ 1,500 $5,000 $ 8,200 $ 1,800 $1,300 Cost per Car Washed $ 0.60 $ 0.08 $0.20 $0.30 $ 0.04 For example, electricity costs should be $1,500 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.40 per car washed. Required: Prepare the company's planning budget for August.
Lavage Rapide 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 $ 1,500 $5,000 $ 8,200 $ 1,800 $1,300 Cost per Car Washed $ 0.60 $ 0.08 $0.20 $0.30 $ 0.04 For example, electricity costs should be $1,500 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.40 per car washed. Required: Prepare the company's planning budget for August.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Lavage Rapide 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
$ 1,500
$ 5,000
$ 8,200
$ 1,800
$ 1,300
Cost per
Car Washed
$ 0.60
$ 0.08
$ 0.20
$0.30
$0.04
For example, electricity costs should be $1,500 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in
August and to collect an average of $6.40 per car washed.
Lavage Rapide
Planning Budget
For the Month Ended August 31
Required:
Prepare the company's planning budget for August.
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