FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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
Administrative expenses
Rent
$ 0.01
For example, electricity costs are $1,100 per month plus $0.05 per car washed. The company expects to wash 8,000 cars in August
and to collect an average of $6.20 per car washed.
Lavage Rapide
Planning Budget
For the Month Ended August 31
Required:
Prepare the company's planning budget for August.
Revenue
Expenses:
Fixed Cost Cost per Car
per Month
Washed
$0.80
$ 0.05
$ 0.25
$ 0.30
Cleaning supplies
Electricity
Maintenance -
Wages and salaries
Depreciation
Rent
$1,100
$ 4,100
$ 8,300.
$ 1,900
$1,500
Administrative expenses
Total expense
Net operating income
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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 Administrative expenses Rent $ 0.01 For example, electricity costs are $1,100 per month plus $0.05 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.20 per car washed. Lavage Rapide Planning Budget For the Month Ended August 31 Required: Prepare the company's planning budget for August. Revenue Expenses: Fixed Cost Cost per Car per Month Washed $0.80 $ 0.05 $ 0.25 $ 0.30 Cleaning supplies Electricity Maintenance - Wages and salaries Depreciation Rent $1,100 $ 4,100 $ 8,300. $ 1,900 $1,500 Administrative expenses Total expense Net operating income
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