Lavage Rapide is a Canadian company that owns and operates a large automatic car wash...
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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 estimates concerning the company's costs: Fixed Cost per Month Cost per Car Washed $ 0.60 $ 0.10 $ 0.25 $ 0.30 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,300 $4,800 $8,500 $2,100 $1,600 $ 0.02 For example, electricity costs should be $1,300 per month plus $0.10 per car washed. The company actually washed 8,500 cars in August and collected an average of $6.60 per car washed. Required: Prepare the company's flexible budget for August. Lavage Rapide Flexible Budget For the Month Ended August 31 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense 0 Net operating income $ 0
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