Lavage Rapide owns and operates a large automatic car wash near Montreal. The following table provides data concerning the company's costs: Fixed Cost Maintenance per Month Cost per Car Washed Cleaning supplies $ 0.60 Electricity $ 1,400 $ 0.08 $ 0.25 $ 4,900 $ 0.30 $ 8,200 $ 1,900 $ 1,800 $ 0.04 Wages and salaries Depreciation Rent Administrative expenses For example, electricity costs are $1,400 per month plus $0.08 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.50 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 8,400 $ 56,050 5,480 2,034 2,315 7,750 8,200 2,100 2,032 29,911 $ 26,139
Lavage Rapide owns and operates a large automatic car wash near Montreal. The following table provides data concerning the company's costs: Fixed Cost Maintenance per Month Cost per Car Washed Cleaning supplies $ 0.60 Electricity $ 1,400 $ 0.08 $ 0.25 $ 4,900 $ 0.30 $ 8,200 $ 1,900 $ 1,800 $ 0.04 Wages and salaries Depreciation Rent Administrative expenses For example, electricity costs are $1,400 per month plus $0.08 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.50 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 8,400 $ 56,050 5,480 2,034 2,315 7,750 8,200 2,100 2,032 29,911 $ 26,139
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
am. 112.
Transcribed Image Text:Lavage Rapide owns and operates a large automatic car wash near Montreal. The following table provides data concerning the
company's costs:
Fixed Cost
Maintenance
per Month
Cost per
Car Washed
Cleaning supplies
$ 0.60
Electricity
$ 1,400
$ 0.08
$ 0.25
$ 4,900
$ 0.30
$ 8,200
$ 1,900
$ 1,800
$ 0.04
Wages and salaries
Depreciation
Rent
Administrative expenses
For example, electricity costs are $1,400 per month plus $0.08 per car washed. The company expects to wash 8,300 cars in August
and to collect an average of $6.50 per car washed.
The actual operating results for August are as follows:
Lavage Rapide
Income Statement
For the Month Ended August 31
Actual cars washed
Revenue
Expenses:
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses
Total expense
Net operating income
8,400
$ 56,050
5,480
2,034
2,315
7,750
8,200
2,100
2,032
29,911
$ 26,139
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