Lavage Rapide is a Canadian company that owns and operates a large automatic car
ID: 2559130 • Letter: L
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:
For example, electricity costs are $1,500 per month plus $0.08 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.70 per car washed.
Complete the company’s planning 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
Solution:
Lavage Rapide
Planning Budget
For the Month Ended August 31
Revenue (8100 Cars * $6.70)
$54,270
Expenses:
Cleaning Supplies (0.60*8100)
$4,860
Electricity (1500 + 8100*0.08)
$2,148
Maintenance (8100*0.25)
2025
Wages and salaries (4900 + 8100*0.20)
6520
Depreciation
8100
Rent
2000
Administrative expenses (1500 + 0.05*8100)
1905
Total expense
$27,558
Net operating income
$26,712
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Lavage Rapide
Planning Budget
For the Month Ended August 31
Revenue (8100 Cars * $6.70)
$54,270
Expenses:
Cleaning Supplies (0.60*8100)
$4,860
Electricity (1500 + 8100*0.08)
$2,148
Maintenance (8100*0.25)
2025
Wages and salaries (4900 + 8100*0.20)
6520
Depreciation
8100
Rent
2000
Administrative expenses (1500 + 0.05*8100)
1905
Total expense
$27,558
Net operating income
$26,712
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