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	Cost Per Car Washed
Cleaning Supplies		$0.70
Electricity	$1300	$0.08
Maintenance		$0.15
Wages and Salaries	$4100	$0.30
Depreciation	$8300
Rent	$2100
Administrative Expenses	$1600	$0.10

For example, electricity costs are $1,300 per month plus $0.08 per car washed. The company expected to wash 8600 cars in August and to collect an average of $6.40 per car washed.

Prepare the company's flexible budget for August.

Answer rating: 100% (QA)

A flexible budget is a budget that adjusts to changes in activity levels It is useful for evaluating the performance of a company when the actual acti... View the full answer