Question

Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost per Month Cost per Car Washed $0.80 $ 0.10 $0.30 $0.30 $ 1.200 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $4,600 $8,200 $ 2,100 $ 1,500 $0.04 For example, electricity costs are $1,200 per month plus $0.10 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.50 per car washed.

Answer 1

8300 53950 LAVAGE RAPIDE Planning Budget For the Month Ended August 31 Cars washed (9) Revenue ($6.50*9) Expenses: Cleaning supplies ($0.80*q) Electricity ($1,200 + $0.10*9) Maintenance ($0.30*q) Wages and Salaries ($4,600 + $0.30*q) Depreciation ($8,200) Rent ($2,100) Administrative Expenses ($1,500 + $0.04*q) Total Expense Net Operating Income 6640 2030 2490 7090 8200 2100 1832 30382 23568