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 Cost Cost per Car Washed per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Adninistrative expenses S 0.50 S0.07 $0.30 S0.30 $1,200 $4,200 $8,200 $2,200 $1,600 $0.03 For example, electricity costs are $1,200 per month plus $0.07 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.50 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 Prev 20 of 22 Next >

Answer 1

Answer-

Lavage Rapide
Planning Budget
For the month ended August 31
Particulars		Amount
		$
Revenue	8400 cars*$6.50 per car washed	54600
Less:-Expenses
Cleaning supplies	8400 cars*$0.50 per car washed	4200
Electricity	(8400 cars*$0.07 per car washed)+$1200	1788
Maintenance	8400 cars*$0.30 per car washed	2520
Wages & Salaries	(8400 cars*$0.30 per car washed)+$4200	6720
Depreciation		8200
Rent		2200
Administrative expenses	(8400 cars*$0.03 per car washed)+$1600	1852
Total Expenses		27480
Net Operating income		27120