Lavage Rapide is a Canadian company that owns and operates a large automatic car
ID: 2427931 • Letter: L
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:
For example, electricity costs are $1,200 per month plus $0.15 per car washed. The company actually washed 8,800 cars in August and collected an average of $4.90 per car washed.
Complete the company’s flexible budget for August.
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:
Explanation / Answer
Lavage Rapide
Flexible budget
For the month ended August
Revenue
43,120
Less:Expeses
Cleaning supplies
7,040
Electricity
2,520
Maintenance
1,760
Wages and salaries
7,640
Depreciation
6,000
Rent
8,000
Administrative expenses
4,880
Total Expenses
37,840
Profit
5,280
Revenue=4.9 x 8800=43,120
Cleaning expeses=0.8 x 8800=7,040
Electricity=1200+(0.15 x8800)=2,520 and so on
Lavage Rapide
Flexible budget
For the month ended August
Revenue
43,120
Less:Expeses
Cleaning supplies
7,040
Electricity
2,520
Maintenance
1,760
Wages and salaries
7,640
Depreciation
6,000
Rent
8,000
Administrative expenses
4,880
Total Expenses
37,840
Profit
5,280
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