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:

For example, electricity costs are $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed.

Required:

Prepare the company’s planning budget for August.

Transcribed Image Text:

Fixed cost Cost per Per Month Car Washed S0.80 Cleaning supplies Electricity S0.15 S1,200 S0.20 Maintenance Wages and salaries $5,000 S0.30 Depreciation S6,000 S8,000 Rent Administrative expenses $0.10 $4,000