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: Pixed Cont per Month $1,200 cleaning supplies Electricity Maintenance Wages and salaries Depreciation Cost per Car Washed $0.60 $ 0.08 $0.30 $0.30 $ 4,800 $ 8,500 $1,900 $1,500 Administrative expenses $ 0.04 For example, electricity costs are $1,200 per month plus $0.08 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.30 per car washed. Required: Prepare the company's planning budget for August Lavage Rapide Planning Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies

Answer 1

Planning Budget

Planning Budget For the month of August 31 Particulars Car washes Amount 8000 Revenue 50400 Expenses Cleaning supplies Electricity 4800 1840 2400 Maintenance Wages and salaries Depreciation Rent 7200 8500 1900 Administrative expense 1820 Total expenses Net operating income 28460 21940