Exercise 9-9 (Static) Planning Budget [LO9-1]

Lavage Rapide is a Canadian company that 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		$ 0.80
Electricity	$ 1,200	$ 0.15
Maintenance		$ 0.20
Wages and salaries	$ 5,000	$ 0.30
Depreciation	$ 6,000
Rent	$ 8,000
Administrative expenses	$ 4,000	$ 0.10

For example, electricity costs should be $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 companys planning budget for August.

Exercise 9-9 (Static) Planning Budget [LO9-1] Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: For example, electricity costs should be $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. Requlred: Prepare the company's planning budget for August