The following table provides data concerning a company’s costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.40 Electricity $ 1,400 $ 0.08 Maintenance $ 0.15 Wages and salaries $ 4,900 $ 0.30 Depreciation $ 8,400 Rent $ 1,800 Administrative expenses $ 1,400 $ 0.04 For example, electricity costs are $1,400 per month plus $0.08 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.10 per car washed. Prepare the company’s planning budget for August.
The following table provides data concerning a company’s costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.40 Electricity $ 1,400 $ 0.08 Maintenance $ 0.15 Wages and salaries $ 4,900 $ 0.30 Depreciation $ 8,400 Rent $ 1,800 Administrative expenses $ 1,400 $ 0.04 For example, electricity costs are $1,400 per month plus $0.08 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.10 per car washed. Prepare the company’s planning budget for August.
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 1PB: A company sells mulch by the cubic yard. Grade A much sells for $150 per cubic yard and has variable...
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The following table provides data concerning a company’s costs:
Fixed Cost per Month | Cost per Car Washed | |
---|---|---|
Cleaning supplies | $ 0.40 | |
Electricity | $ 1,400 | $ 0.08 |
Maintenance | $ 0.15 | |
Wages and salaries | $ 4,900 | $ 0.30 |
$ 8,400 | ||
Rent | $ 1,800 | |
Administrative expenses | $ 1,400 | $ 0.04 |
For example, electricity costs are $1,400 per month plus $0.08 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.10 per car washed.
Prepare the company’s planning budget for August.
Budgeted Cars Washed | |
Revenue | |
Expenses: | |
Cleaning Supplies | |
Electricity | |
Maintenance | |
Wages and Salaries | |
Depreciation | |
Rent | |
Administrative Expenses | |
Total Expenses | |
Net Operating Income | $ |
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