Exercise 8-7 Flexible Budget [LO8-1] Lavage Rapide is a Canadian company that ow

Question

Exercise 8-7 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 $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 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

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Fixed Cost per Month Variable costs Total Revenue = 9000*4.90            44,100.00 Total costs: Cleaning supplies                 7,200.00              7,200.00 Electricity                      1,200.00              1,350.00              2,550.00    Maintenance                1,800.00              1,800.00 Wages and salaries                      5,000.00              2,700.00              7,700.00    Depreciation                     6,000.00              6,000.00    Rent                       8,000.00              8,000.00 Administrative expenses                      4,000.00                  900.00              4,900.00 Total costs            38,150.00 Income              5,950.00

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