Lavage Rapide is a Canadian company that owns and operates a large automatic car wash...
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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
$
0.80
Electricity
$
1,200
$
0.06
Maintenance
$
0.15
Wages and salaries
$
4,300
$
0.40
Depreciation
$
8,000
Rent
$
2,100
Administrative expenses
$
1,400
$
0.01
For example, electricity costs are $1,200 per month plus $0.06 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.60 per car washed.
Required:
Prepare the companys 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
0
Net operating income
$0
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