Question

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost per Month $1,000 cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $ 0.60 $ 0.09 $ 0.25 $ 0.30 $ 4,300 $ 8,500 $ 2,000 $ 1,800 $ 0.02 For example, electricity costs are $1,000 per month plus $0.09 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.90 per car washed. Required: Prepare the company's planning budget for August.

Answer 1

Answer-

Lavage Rapide
Planning Budget
For the month ended August 31
Particulars		Amount
		$
Revenue	8100 cars*$6.90 per car washed	55890
Less:-Expenses
Cleaning supplies	8100 cars*$0.60 per car washed	4860
Electricity	(8100 cars*$0.09 per car washed)+$1000	1729
Maintenance	8100 cars*$0.25 per car washed	2025
Wages & Salaries	(8100 cars*$0.30 per car washed)+$4300	6730
Depreciation		8500
Rent		2000
Administrative expenses	(8100 cars*$0.02 per car washed)+$1800	1962
Total Expenses		27806
Net Opreating income		28084