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 companys costs Fixed Cost per Month Cost per Car Washed Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $0.70 $ 0.09 $0.20 $ 0.20 $1,300 $4,500 $ 8,400 $2,100 $1,600 $ 0.02 For example, electricity costs are $1,300 per month plus $0.09 per car washed. The company actually washed 8,400 cars in August and collected an average of $6.30 per car washedRequired: Prepare the companys 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

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$ 52-120 lem deoa 588 O キ 1680 61 8 O bcpeiohay 2-10 o $1368 hont

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