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 Cost per Car Washed $0.70 $0.09 $ 0.20 $ 0.20 Fixed Cost per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,300 $ 4,500 $ 8,300 $ 1,900 $1,500 $ 0.03 For example, electricity costs are $1,300 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.30 per car washed Required Complete the company's planning budget for August. Lavage Rapide Planning Budget For the Month Ended August 31 Revenue Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income

Explanation / Answer

Planning budget :

Revenue (8400*6.30) 52920 Expense Cleaning supplies (8400*0.70) 5880 Electricity (8400*.09+1300) 2056 maintenance (8400*.20) 1680 Wages and salaries (8400*.20+4500) 6180 Depreciation 8300 Rent 1900 Administrative expense (8400*.03+1500) 1752 Total expense 27748 Net operating income 25172

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