Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month Cost per Car Washed $ 0.70 $ 1,200 $ 0.06 $ 0.30 $ 4,500 $ 0.30 $ 8,000 $ 2,100 $ 1,700 $ 0.02 For example, electricity costs are $1,200 per month plus $0.06 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.70 per car washed. Required: Prepare the company's planning budget for August. Lavage Rapide Planning Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table
provides data concerning the company's costs:
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses
Fixed Cost
per Month
Cost per
Car Washed
$ 0.70
$ 1,200
$ 0.06
$ 0.30
$ 4,500
$ 0.30
$ 8,000
$ 2,100
$ 1,700
$ 0.02
For example, electricity costs are $1,200 per month plus $0.06 per car washed. The company expects to wash 8,100 cars in August
and to collect an average of $6.70 per car washed.
Required:
Prepare the company's planning budget for August.
Lavage Rapide
Planning Budget
For the Month Ended August 31
Revenue
Expenses:
Cleaning supplies
Electricity
Maintenance
Transcribed Image Text:Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month Cost per Car Washed $ 0.70 $ 1,200 $ 0.06 $ 0.30 $ 4,500 $ 0.30 $ 8,000 $ 2,100 $ 1,700 $ 0.02 For example, electricity costs are $1,200 per month plus $0.06 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.70 per car washed. Required: Prepare the company's planning budget for August. Lavage Rapide Planning Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance
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