Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.80 Electricity $ 1,400 $ 0.07 Maintenance $ 0.25 Wages and salaries $ 4,000 $0.20 Depreciation $ 8,100 Rent $ 1,800 Administrative expenses $ 1,600 $ 0.02 For example, electricity costs should be $1,400 per month plus $0.07 per car washed. The company actually washed 8, 300 cars in August and collected an average of $6.80 per car washed. Required: Prepare the company's flexible 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: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.80 Electricity $ 1,400 $ 0.07 Maintenance $ 0.25 Wages and salaries $ 4,000 $0.20 Depreciation $ 8,100 Rent $ 1,800 Administrative expenses $ 1,600 $ 0.02 For example, electricity costs should be $1,400 per month plus $0.07 per car washed. The company actually washed 8, 300 cars in August and collected an average of $6.80 per car washed. Required: Prepare the company's flexible 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: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.80
Electricity $ 1,400 $ 0.07 Maintenance $ 0.25 Wages and salaries $ 4,000 $ 0.20 Depreciation $ 8, 100 Rent $ 1,800
Administrative expenses $ 1,600 $ 0.02 For example, electricity costs should be $1,400 per month plus $0.07 per car
washed. The company actually washed 8,300 cars in August and collected an average of $6.80 per car washed.
Required: Prepare the company's flexible budget for August.
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