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 Cost per Car Washed $ 0.70 $ 0.07 $ 0.15 $ 0.30 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,000 $ 4,600 $ 8,200 $ 2,200 $ 1,600 $ 0.03 For example, electricity costs are $1,000 per month plus $0.07 per car washed. The company actually washed 8,300 cars in August and collected an average of $6.80 per car washed. Required: Prepare the company's flexible budget for August. Lavage Rapide Flexible Budget For the Month Ended August 31 Revenue Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income $

Answer 1

Lavage rapide planning bugdet for the month ended august 31 cars washed in august 8300 cost per car washed 6.80 revenue =8300*6.80 56440 expenses cleaning supplies 5810 electricity 1581 maintenance 1245 wages and salaries 7090 depreciation 8200 rent 2200 administration exp 1849 total expense 27975 net operating income 28465