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 |
Cost per Car Washed |
||||
Cleaning supplies | $ | 0.80 | |||
Electricity | $ | 1,100 | $ | 0.08 | |
Maintenance | $ | 0.25 | |||
Wages and salaries | $ | 4,300 | $ | 0.20 | |
Depreciation | $ | 8,400 | |||
Rent | $ | 1,900 | |||
Administrative expenses | $ | 1,600 | $ | 0.04 | |
For example, electricity costs are $1,100 per month plus $0.08 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.
Revenue
Expenses:
Cleaning Supplies
Electricity
Maintanence
Wages and Salaries
Depreciation
Rent
Adminsitrative expenses
Total expense
Net operating income
ANSWER
Planning Budget | ||
Budgeted Cars washed | 8,500 | |
Revenue | 51,850 | =8,500*6.10 |
Expenses: | ||
Cleaning supplies | 6,800 | =8,500 *0.8 |
Electricity | 1,780 | =1,100 +(8,500 *0.08) |
Maintenance | 2,125 | =8,500 *0.25 |
Wages and salaries | 6,000 | =4,300+(8,500 *0.20) |
Depreciation | 8,400 | |
Rent | 1,900 | |
Administrative expenses | 1,940 | =1600+(8,500*0.04) |
Total expenses | 28,945 | |
Net operating income | 22,905 |
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Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility...
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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 Cost per Car Washed Cleaning supplies $ 0.70 Electricity $ 1,200 $ 0.08 Maintenance $ 0.25 Wages and salaries $ 4,200 $ 0.30 Depreciation $ 8,400 Rent $ 2,100 Administrative expenses $ 1,700 $ 0.03 For example, electricity costs are $1,200 per month plus $0.08 per car washed. The...
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 Cost per Car Washed Cleaning supplies $ 0.60 Electricity $ 1,300 $ 0.08 Maintenance $ 0.25 Wages and salaries $ 4,400 $ 0.40 Depreciation $ 8,300 Rent $ 1,800 Administrative expenses $ 1,300 $ 0.01 For example, electricity costs are $1,300 per month plus $0.08 per car washed. The...
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 Cost per Car Washed Cleaning supplies $ 0.70 Electricity $ 1,100 $ 0.05 Maintenance $ 0.25 Wages and salaries $ 4,300 $ 0.20 Depreciation $ 8,400 Rent $ 1,900 Administrative expenses $ 1,500 $ 0.03 For example, electricity costs are $1,100 per month plus $0.05 per car washed. The...
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 Cost per per Month Car Washed Cleaning supplies $0.60 Electricity $1,500 $0.09 Maintenance $0.15 Wages and salaries $ 4,300 $0.40 Depreciation $ 8,400 Rent $2,100 Administrative expenses $1,400 $ 0.03 For example, electricity costs are $1,500 per month plus $0.09 per car washed. The company expects to wash 8,300 cars in...