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
$
0.09
Maintenance
$
0.20
Wages and salaries
$
4,200
$
0.20
Depreciation
$
8,300
Rent
$
1,800
Administrative expenses
$
1,500
$
0.02
For example, electricity costs are $1,200 per month plus $0.09 per car washed. The company actually washed 8,100 cars in August and collected an average of $6.40 per car washed.
Required:
Prepare the companys flexible budget for August.
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