M Exercise 9-9 (Algo) Planning Budget (LO9-1] Lavage Rapide is a Canadian company that 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 $1,000 $4,000 $8,000 $1,000 $1,300 $ 0.05 Cost per Car Washed $ 0.70 $ 0.07 $ 0.25 $0.30 For example, electricity costs should be $1,000 per month plus $0.07 per car washed. The company expects to wash 8.200 cars in August and to collect an average of $6.80 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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Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making. 

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.