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 cancerning the company's costs: Fixed Cont per Honth Cost per Cleaning suppiles Electricity Maintenanee Wages and salarlea Depreciation Rent Adminiatrative expenses Car Washed 80.70 so.08 $0.30 $0.40 1.400 $4,100 s 8,200 $1,800 1 700 $0.04 For example, electricity costs are $1.400 per month plus $0.08 per car was and collected an average of $6.80 per car washed. hed. The company actuly washed 8.600 cars in August Required: Prepare the company's flexible budget for August Lavage Rapide Flexible Budget For the Month Ended August 31 Revenue Expenses Cleaning supplies Eleciridity Maintenance Wages and salaries Depregation Rent Total expense Ne: operaing incorse

Explanation / Answer

Lavage Rapide Flexible Budget For the Month Ended August 31 Actual Cars washed 8,600 Revenue (8,600 x $6.8) $58,480 Expenses:     Cleaning Supplies (8,600 x $0.70) $6,020     Electricity (8,600 x $0.08) + $1,400 $2,088     Maintenance (8,600 x $0.30) $2,580     Wages and Salaries (8,600 x $0.40) + $4,100 $7,540     Depreciation $8,200     Rent $1,800     Administrative expenses (8,600 x $0.04) + $1,700 $2,044 Total expense $30,272 Net operating income $28,208

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