Question

ed Exercises Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The provides data concerning the company's costs Fixed Cost per Cost Car Washed per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,58 $8.58 $8.08 $0.15 $8.28 $1,308 $4,980 $8,380 $1,880 $8.84 For example, electricity costs are $1,300 per month plus $0.08 per car washed The company expects to wash 8,300 cars in August and to collect an average of $6.20 per car washed Required: Prepare the company's planning budget for August Lavage Rapide Planning Budges For the Moeth Ended August 31 Revenue Cleaning supplies Electricty Maintenance Wages and salaries Depredation Rent T otal expenea Prev 1 of 6l Next > o search

Answer 1

Answer

Preparation of the company's planning budget for the month August -

Lavage Rapide
Planning Budget
For the month ended August 31
PARTICULARS	AMOUNT
Total budgeted Car washes in August	8300 cars
Revenue (8,300 × 6.20)	$ 51,460
Expenses:
Cleaning supplies (8,300 × 0.50)	4,150
Electricity (1,300 + (8,300×0.08)	1,964
Maintainence (8,300 × 0.15)	1,245
Wages and Salaries (4,900 + (8,300×0.20)	6,560
Depreciation	8,300
Rent	1,800
Administrative expenses (1500 + (8,300×0.04)	1,832
Total Expenses	(25,851)
Net Operating Income	$ 25,609