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:

For example, electricity costs are $1,400 per month plus $0.07 per car washed. The company actually washed 8,300 cars in August and collected an average of $6.70 per car washed.

Required:

Prepare the company’s flexible budget for August.

Fixed Cost
per Month Cost per
Car Washed Cleaning supplies $ 0.70 Electricity $ 1,400 $ 0.07 Maintenance $ 0.30 Wages and salaries $ 4,100 $ 0.30 Depreciation $ 8,200 Rent $ 2,000 Administrative expenses $ 1,500 $ 0.05

Explanation / Answer

Notes:

1. Revenue = 8,300 * $ 6.70

2. Expenses :

Lavage Rapide Flexible Budget For the Month Ended August 31 Revenue 55,610 Expenses: Cleaning supplies 5,810 Electricity 1,981 Maintenance 2,490 Wages and salaries 6,590 Depreciation 8,200 Rent 2,000 Administrative expenses 1,915 Total expense 28,986 Net operating income 26,624

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

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