Exercise 8-8 Flexible Budget [LO8-1] Lavage Rapide is a Canadian company that ow

Question

Exercise 8-8 Flexible Budget [LO8-1]

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:

For example, electricity costs are $1,200 per month plus $0.09 per car washed. The company actually washed 8,300 cars in August and expects to collect an average of $6.30 per car washed.

Complete the company’s flexible budget for August.

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:

Explanation / Answer

Complete the company’s flexible budget for August.

Revenue (8300*6.30) 52290 Expenses Cleaning supplies (8300*.70) 5810 Electricity (8300*.09+1200) 1947 Maintenance (8300*.30) 2490 Wages and salaries (8300*.40+4300) 7620 Depreciation 8300 Rent 1900 Administrative expenses (8300*.04+1700) 2032 Total expense 30099 Net operating income 22191

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