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 concerning the company’s costs: 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 $1,100 per month plus $0.08 per car washed. The company actually washed 8,500 cars in August and collected an average of $6.40 per car washed. Complete the company’s flexible budget for August.
For example, electricity costs are $1,100 per month plus $0.08 per car washed. The company actually washed 8,500 cars in August and collected an average of $6.40 per car washed. Complete the company’s flexible budget for August.
value 10.00 points 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 Fixed Cost per Month Cost per Car Washed S 0.60 $ 0.08 S 0.10 $ 0.40 Cleaning supplies Electricity $1,100 Wages and salaries Depreciation Rent Administrative expenses $4,800 $8,300 $1,800 $1,400 S 0.02 For example, electricity costs are $1,100 per month plus $0.08 per car washed. The company actually washed 8,500 cars in August and collected an average of $6.40 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 Rent Total expense Net operating income

Explanation / Answer

Ans. Lavage Rapide Flexible Budget For the Month Ended August 31 Revenue 54400 Expenses: Cleaning supplies 5100 Electricity 1780 Maintenance 850 Wages and salaries 8200 Depreciation 8300 Rent 1800 Administration expenses 1570 Total expenses 27600 Net operating income 26800 *Calculation: Revenue (8500*6.40) Cleaning supplies (8500*0.60) Electricity (1100+(0.08*8500)] Maintenance (8500*0.10) Wages and salaries [4800+(0.40*8500)] Depreciation 8300 Rent 1800 Administration expenses [1400+(0.02*8500)] *Flexible budget is prepared on the basis of actual units. *Fixed costs always remain constant.

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