Question

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash tacility near Montreal. The following table provides data concerning the company's costs: Fixed Cost per Month Cost per Car Washed $ 0.50 $ 0.09 $ 0.25 $ 0.20 cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,400 $ 4,700 $ 8,400 $ 2,100 $1,400 $ 0.04 For example, electricity costs are $1,400 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.10 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 Prev 1 of 5 Score answer >

Answer 1

Planning Budget Actula Car Washed 8400 51240 Revenue (6.10*8400) Expenses Cleaning supplies (0.50*8400) Electricity(1400+(0.09*8400) Maintenance(0.25*8400) Wages and Salaries (4700+(0.20*8400) Depreciation Rent Administrative Expenses (1400+(0.04*8400) Total Expenses Net operating income 4200 2156 2100 63801 8400 2100 1736 27072 24168