Miracle Car Wash located in Nashville, Tennessee has been providing interior and exterior car washes since 1960. Provided below is information regarding Miracle's costs: Fixed Cost Cost per Car Washed $0.50 per Month Cleaning supplies Electricity $1,500 $0.06 Maintenance $0.30 Wagea and salaries Depreciation Rent 54,900 $0.40 $8,400 $1,900 $1,500 Administrative expenses $0.03 For example, electricity costs are $1,500 per month plus $0.06 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.10 per car washed. Required: Prepare the companys planning budget for August.
Miracle Car Wash located in Nashville, Tennessee has been providing interior and exterior car washes since 1960. Provided below is information regarding Miracle's costs: Fixed Cost Cost per Car Washed $0.50 per Month Cleaning supplies Electricity $1,500 $0.06 Maintenance $0.30 Wagea and salaries Depreciation Rent 54,900 $0.40 $8,400 $1,900 $1,500 Administrative expenses $0.03 For example, electricity costs are $1,500 per month plus $0.06 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.10 per car washed. Required: Prepare the companys planning budget for August.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Miracle Car Wash located in Nashville, Tennessee has been providing interior and exterior car washes since 1960. Provided below is
information regarding Miracle's costs:
Fixed Cost
per Month
Cost per
Car Washed
$0.50
Cleaning supplies
Electricity
$1,500
$0.06
Maintenance
$0.30
Wages and salaries
Depreciation
Rent
६4, 900
$0.40
$8,400
$1,900
$1,500
Adninistrative expenaes
$0.03
For example, electricity costs are $1,500 per month plus $0.06 per car washed. The company expects to wash 8,500 cars in August
and to collect an average of $6.10 per car washed.
Required:
Prepare the company's planning budget for August.
ces
Miracle Car Wash
Planning Budgel
For the Month Ended August 31
Revenue
Expenses
Cleaning supples
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses
Total expense
Net operating income
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