Question

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: Fixed Cost per Month $ 1,400 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $ 0.50 $ 0.09 $ 0.20 $ 0.40 $ 4,900 $ 8,300 $ 1,900 $ 1,500 $ 0.05 For example, electricity costs are $1,400 per month plus $0.09 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.80 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 Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income

Answer 1

Requirement 1 Lavage Rapide Planning Budget For the month ended August 31 Planning Budget Cars Washed 8300 Plan $ 56,440.00 $ Revenue Expenses : Cleanings and supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total Expense Net Operating income tी की सीसी 4,150.00 2,147.00 1,660.00 8,220.00 8,300.00 1,900.00 1,915.00 28,292.00 28,148.00 $ $ 8300*6.8 Working : Revenue Expenses : Cleanings and supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses 8300*0.5 1400+8300*0.09 8300*0.2 4900+8300*0.4 $ 8,300.00 $ 1,900.00 1500+8300*0.05