Question

100 Check my worn Exercise 9-11 Flexible Budget (LO9-1) 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 $1,200 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 0.70 $ 0.05 $ 0.30 $0.30 $4,600 $8,200 $2,100 $1,700 $ 0.02 For example, electricity costs are $1,200 per month plus $0.05 per car washed. The company actually washed 8,200 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: < Prey 2 of 6 !! Next >

Answer 1

Actual cars washed	8200
Revenue (8200*6.80)	55,760
Expenses :
Cleaning supplies (8200*0.70)	5740
Electricity (8200*0.05)+1200	1610
Maintenance (8200*0.30)	2460
Wages and salaries (8200*0.30)+4600	7060
Depreciation	8200
Rent	2100
Administrative expenses (8200*0.02)+1700	1864
Total expenses	29034
Net operating income	26,726