Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility...
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Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company's costs Fixed Cost per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $0.50 0.09 $0.20 $0.20 $1,100 $4,100 $8,300 $1,900 $1,700 $0.04 For example, electricity costs are $1,100 per month plus $0.09 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.50 per car washed The actual operating results for August appear below Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue Expenses 8,100 $54,100 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses 4,500 1,790 1,840 6,060 8,300 2,100 1,920 26,510 $27,590 Total expense Net operating income Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Revenue and Spending Variances Activity Variances Revenue Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses 0 None 0 None 0 None Total expense Net operating income
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