Question: avage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the companys costs: Fixed Cost per
avage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the companys costs:
| Fixed Cost per Month | Cost per Car Washed | |
|---|---|---|
| Cleaning supplies | $ 0.70 | |
| Electricity | $ 1,400 | $ 0.06 |
| Maintenance | $ 0.20 | |
| Wages and salaries | $ 4,500 | $ 0.20 |
| Depreciation | $ 8,300 | |
| Rent | $ 1,900 | |
| Administrative expenses | $ 1,400 | $ 0.03 |
For example, electricity costs should be $1,400 per month plus $0.06 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.30 per car washed.
Required:
Prepare the companys planning budget for August.
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