Lavage Rapide is a Canadian company that owns and operates a large automatic car wash...
70.2K
Verified Solution
Link Copied!
Question
Accounting
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 companys costs:
Fixed Cost per Month
Cost per Car Washed
Cleaning supplies
$ 0.50
Electricity
$ 1,500
$ 0.06
Maintenance
$ 0.25
Wages and salaries
$ 4,300
$ 0.20
Depreciation
$ 8,400
Rent
$ 2,100
Administrative expenses
$ 1,600
$ 0.03
For example, electricity costs are $1,500 per month plus $0.06 per car washed. The company actually washed 8,200 cars in August and collected an average of $6.40 per car washed.
Required:
Prepare the companys flexible budget for August.
\begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{ Lavage Rapide } \\ \hline For the Month Ended August 31 \\ \hline Revenue & \\ \hline Expenses: & \\ \hline Cleaning supplies & \\ \hline Electricity & \\ \hline Maintenance & \\ \hline Wages and salaries & \\ \hline Depreciation & \\ \hline Rent & \\ \hline Administrative expenses & \\ \hline Total expense & \\ \hline Net operating income & \\ \hline \end{tabular}
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
\begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{ Lavage Rapide } \\ \hline For the Month Ended August 31 \\ \hline Revenue & \\ \hline Expenses: & \\ \hline Cleaning supplies & \\ \hline Electricity & \\ \hline Maintenance & \\ \hline Wages and salaries & \\ \hline Depreciation & \\ \hline Rent & \\ \hline Administrative expenses & \\ \hline Total expense & \\ \hline Net operating income & \\ \hline \end{tabular}
