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 Fixed Cost per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed 0.70 $0.08 0.20 0.20 $1,400 $4,400 $ 8,300 $ 2,100 $1,400 0.01 For example, electricity costs are $1,400 per month plus $0.08 per car washed. The company actually washed 8,500 cars in August and expects to collect an average of $6.20 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 Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense 0 Net operating income 0

Explanation / Answer

Flexible budget :

Revenue (8500*6.20) 52700 Expense Cleaning supplies (8500*.70) 5950 Electricity (8500*.08+1400) 2080 Maintenance (8500*.20) 1700 Wages and salaries (8500*.20+4400) 6100 Depreciation 8300 Rent 2100 Administrative expense (8500*.01+1400) 1485 Total expense 27715 Net operating income 24985

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.