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 carwash facility near Montreal. The following table provides data concerming the company's costs: Cost per Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent $ 0.60 $ 0.07 $0.20 0.30 $ 1,400 4,700 $ 8,500 1,800 $ 1,700 $0.01 For example, electricity costs are $1,400 per month plus $0.07 per car washed. The company actually washed 8,100 cars in August and expects to collect an average of $6.30 per car washed. Required: Complete the company's flexible budget for August Lavage Rapide Flexible Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Wages and salaries Depreciation Rent Total expense Net operating income MacBook Air

Explanation / Answer

Lavage Rapids Flexible Budget For Aug 31 A.Revenue(8100 * 6.3) 51030 Expenses Fixed Variable Fixed + Variable Cleaning Supplies(8100*0.6) 0 4860 4860 Electricity(8100*0.07) 1400 567 1967 Maintainance(8100*0.2) 0 1620 1620 Wages and Salaries(8100*0.3) 4700 2430 7130 Depreciation 8500 0 8500 Rent 1800 0 1800 Administrative Expenses(8100*0.01) 1700 810 2510 B.Total Expenses 28387 Net Operating Income(A-B) 22643

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