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 $ 1,200 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $ 0.60 $ 0.08 $ 0.10 $ 0.30 $ 4,100 $ 8,100 $1,900 $1,500 $ 0.03 For example, electricity costs are $1,200 per month plus $0.08 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.00 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 Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense

Answer 1

LR company Planning Budget For the month Ended August 31 $ Service revenue 49,200 Revenue 49,200 Expenses: $656 Cleaning supplies Electricity 1,856 Maintenance 820 6,560 Wages and salaries Depriciation 8,100 Rent 1,900 Administrative expense 1746 Total expense 21,638

• revenue amounting $49,200 is calculated by multiplying the revenue per car wash with the estimated numbers of car.
• total expenses amounting to $21,638 is calculated by adding the all of the given fixed and variable and semi variable expenses.