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 $ 1,100 $ 4,700 $ 8,300 $ 2,100 $ 1,300 Cost per Car Washed $ 0.50 $ 0.10 $ 0.25 $ 0.40 $ 0.05 For example, electricity costs should be $1,100 per month plus $0.10 per car washed. The company actually washed 8,600 ca August and collected an average of $6.00 per car washed. Required:
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 $ 1,100 $ 4,700 $ 8,300 $ 2,100 $ 1,300 Cost per Car Washed $ 0.50 $ 0.10 $ 0.25 $ 0.40 $ 0.05 For example, electricity costs should be $1,100 per month plus $0.10 per car washed. The company actually washed 8,600 ca August and collected an average of $6.00 per car washed. Required:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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 i
Depreciation
Administrative expenses
Rent
Lavage Rapide
Flexible Budget
For the Month Ended August 31
$ 0.05
For example, electricity costs should be $1,100 per month plus $0.10 per car washed. The company actually washed 8,600 cars in
August and collected an average of $6.00 per car washed.
Revenue
Expenses:
Required:
Prepare the company's flexible budget for August.
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Fixed
Cost per
Month
$ 1,100
$ 4,700
$ 8,300
$ 2,100
$ 1,300
Rent
Cost per
Car Washed
Administrative expenses
$0.50
$ 0.10
$ 0.25
$ 0.40](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb3b64eb1-870f-4d30-8e97-740c3909fe35%2Ff629f3d7-ee6f-4423-bf10-5e674a0ddee4%2Fx8qdlk_processed.jpeg&w=3840&q=75)
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 i
Depreciation
Administrative expenses
Rent
Lavage Rapide
Flexible Budget
For the Month Ended August 31
$ 0.05
For example, electricity costs should be $1,100 per month plus $0.10 per car washed. The company actually washed 8,600 cars in
August and collected an average of $6.00 per car washed.
Revenue
Expenses:
Required:
Prepare the company's flexible budget for August.
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Fixed
Cost per
Month
$ 1,100
$ 4,700
$ 8,300
$ 2,100
$ 1,300
Rent
Cost per
Car Washed
Administrative expenses
$0.50
$ 0.10
$ 0.25
$ 0.40
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