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 car wash facility near Montreal. The following table provides data concerning the company's costs: Cost per Car Washed $8.68 $ 0.10 0.30 8.40 Fixed Cost per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses s 1,400 4,800 8,480 1,980 $ 1,400 0.03 For example, electricity costs are $1,400 per month plus $0.10 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.10 per car washed. Required: Prepare the company's planning budge or August. Rapide Planning Budget For the Month Ended August 31 Actual cars washed Revenue Expenses Cleaning supplies Electricity Wages and salaries Rent Administrative expenses Total expense Net operating income

Explanation / Answer

Planning budget Budgeted Cars washed 8300 Revenue 50630 =8300*6.1 Expenses: Cleaning supplies 4980 =8300*0.6 Electricity 2230 =1400+(8300*0.1) Maintenance 2490 =8300*0.3 Wages and salaries 8120 =4800+(8300*0.4) Depreciation 8400 Rent 1900 Administrative expenses 1649 =1400+(8300*0.03) Total expenses 29769 Net operating income 20861

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

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