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 Fixed Cost per Month Cost per Car Washed Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 0.70 $0.09 $0.15 $0.30 $1,100 $4,300 $8,500 $1,900 $1,700 0.02 For example, electricity costs are $1,100 per month plus $0.09 per car washed. The company actually washed 8,300 cars in August and collected an average of $6.50 per car washed Required Prepare the company's flexible budget for August. Lavage Rapide Flexible Budget For the Month Ended August 31

Explanation / Answer

Flexible budget :

Revenue 53950 Expense Cleaning supplies 5810 Electricity 1847 Maintenance 1245 Wages and salaries 6790 Depreciation 8500 Rent 1900 Administrative expense 1866 Total expense 27958 Net operating income 25992

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