Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.40 Electricity $ 1,000 $ 0.07 Maintenance $ 0.20 Wages and salaries $ 4,300 $ 0.30 Depreciation $ 8,500 Rent $ 1,800 Administrative expenses $ 1,300 $ 0.02 For example, electricity costs should be $1,000 per month plus $0.07 per car washed. The company actually washed 8,500 cars In August and collected an average of $5.90 per car washed. Required: Prepare the company's flexible budget for August. Lavage Rapide Flexible Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expenses 0 Net operating income $ 0
Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.40 Electricity $ 1,000 $ 0.07 Maintenance $ 0.20 Wages and salaries $ 4,300 $ 0.30 Depreciation $ 8,500 Rent $ 1,800 Administrative expenses $ 1,300 $ 0.02 For example, electricity costs should be $1,000 per month plus $0.07 per car washed. The company actually washed 8,500 cars In August and collected an average of $5.90 per car washed. Required: Prepare the company's flexible budget for August. Lavage Rapide Flexible Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expenses 0 Net operating income $ 0
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides
estimates concerning the company's costs:
Fixed
Cost per
Month
Cost per
Car Washed
Cleaning supplies
$ 0.40
Electricity
$ 1,000
$ 0.07
Maintenance
$ 0.20
Wages and salaries
$ 4,300
$ 0.30
Depreciation
$ 8,500
Rent
$ 1,800
Administrative expenses
$ 1,300
$ 0.02
For example, electricity costs should be $1,000 per month plus $0.07 per car washed. The company actually washed
8,500 cars In August and collected an average of $5.90 per car washed.
Required:
Prepare the company's flexible budget for August.
Lavage Rapide
Flexible Budget
For the Month Ended August 31
Revenue
Expenses:
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses
Total expenses
0
Net operating income
$
0
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