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 carwash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,000 per month plus $0.08 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.00 per car washed.

Complete the company’s planning budget for August.

Please show work for inputs.

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:

Lavage Rapide Planning Budget For the Month Ended August 31 Revenue Expenses Cleaning supplies Maintenance Wages and salaries Depreciation Administrative expenses Total expense Net operating income

Explanation / Answer

Planning budget Revenue 48000 =8000*6 Expenses: Cleaning supplies 4800 =8000*0.6 Electricity 1640 =1000+(8000*0.08) Maintenance 1600 =8000*0.2 Wages and salaries 6600 =4200+(8000*0.3) Depreciation 8300 Rent 2000 Administrative expenses 1720 =1400+(8000*0.04) Total expense 26660 Net operating income 21340

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