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 MonthCar Washed Cost per Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 0.40 $ 0.07 $ 0.25 $ 0.40 $1,100 $4,500 $ 8,300 S 2,200 $1,400 0.01 For example, electricity costs are $1,100 per month plus $0.07 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.60 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

the following is the planning budget for august.

Lavage Rapide

Planning Budget

For the month ended August 31.

Reveue (8,000*$6.60) $52,800 expenses: Cleaning supplies ($0.40*8,000) 3,200 Electricity ($1100+($0.07*8,000)) 1,660 maintenance ($0.25*8,000) 2,000 wages and salaries ($4,500 +($0.40*8,000)) 7,700 depreciation 8,300 rent 2,200 administrative expenses ($1400+($0.01*8,000)) 1,480 Total expense 26,540 Net operating income (52,800-26,540) $26,260

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