Lavage Rapide is a Canadian company that owns and operates a large automatic car
ID: 2529530 • Letter: L
Question
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company’s costs:
For example, electricity costs are $1,400 per month plus $0.05 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.80 per car washed.
Required:
Can someone help me plese
Fixed Costper Month Cost per
Car Washed Cleaning supplies $ 0.50 Electricity $ 1,400 $ 0.05 Maintenance $ 0.15 Wages and salaries $ 4,300 $ 0.30 Depreciation $ 8,100 Rent $ 2,100 Administrative expenses $ 1,800 $ 0.02 Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost Cost per per Month Car Washed points Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $0.50 0.05 $0.15 $0.30 $1,400 $4,300 $8,100 2,100 $1,800 eBook $0.02 Hint For example, electricity costs are $1,400 per month plus $0.05 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.80 per car washed. Print Required: Prepare the company's planning budget for August. References Lavage Rapide Planning Budget For the Month Ended August 31 cars washed 4,100 Revenue Cleaning supplies Electricity Wages and salaries Depreciation Rent Total expense Net operating income
Explanation / Answer
Budgeted cars washed 8500 Revenue 57800 =8500*6.8 Expenses: Cleaning supplies 4250 =8500*0.5 Electricity 1825 =1400+(8500*0.05) Maintenance 1275 =8500*0.15 Wages and salaries 6850 =4300+(8500*0.3) Depreciation 8100 Rent 2100 Administrative expenses 1970 =1800+(8500*0.02) Total expenses 26370 Net operating income 31430
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