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 $0.50 $0.06 $ 0.20 $ 0.20 Fixed Cost per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,400 $ 4,400 $ 8,400 $1,900 $1,600 $0.03 For example, electricity costs are $1,400 per month plus S0.06 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.70 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 lotal expense Net operating income

Explanation / Answer

Planing budget Revenue 55610 =8300*6.7 Expenses: Cleaning supplies 4150 =8300*0.5 Electricity 1898 =1400+(8300*0.06) Maintenance 1660 =8300*0.2 Wages and salaries 6060 =4400+(8300*0.2) Depreciation 8400 Rent 1900 Administrative expenses 1849 =1600+(8300*0.03) Total expenses 25917 Net operating income 29693

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

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