Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near
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Question:
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 company’s costs:
Fixed Cost per Month | Cost per Car Washed | |
---|---|---|
Cleaning supplies | $ 0.70 | |
Electricity | $ 1,300 | $ 0.07 |
Maintenance | $ 0.20 | |
Wages and salaries | $ 4,200 | $ 0.40 |
Depreciation | $ 8,400 | |
Rent | $ 1,900 | |
Administrative expenses | $ 1,400 | $ 0.03 |
For example, electricity costs are $1,300 per month plus $0.07 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.10 per car washed.
Required:
Prepare the company’s planning budget for August.
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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