Lavage Rapide is a Canadian company that owns and operates a large automatic car

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:

For example, electricity costs are $1,200 per month plus $0.09 per car washed. The company actually washed 8,500 cars in August and collected an average of $6.00 per car washed.

Required:

Prepare the company’s flexible budget for August.

Fixed Cost
per Month Cost per
Car Washed Cleaning supplies $ 0.50 Electricity $ 1,200 $ 0.09 Maintenance $ 0.20 Wages and salaries $ 4,800 $ 0.20 Depreciation $ 8,100 Rent $ 2,100 Administrative expenses $ 1,700 $ 0.01 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

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Lavage Rapide Flexible Budget For the month ended August 31 Paticulars Amount Revenues : = 8500 * 6             51,000.00 Expenses : Cleaning Supplies = 8500* .50               4,250.00 Electricity = 1200 + 8500 * .09               1,965.00 Maintenance = 8500 * .20               1,700.00 Wages and salaries = 4800 + 8500*.20               6,500.00 Depreciation               8,100.00 Rent               2,100.00 Administrative expenses = 1700 + 8500*.01               1,785.00 Total Expense             26,400.00 Net operating income             24,600.00

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