Lavage Rapide is a Canadian company that owns and operates a

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 $1,300 per month plus $0.09 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.70 per car washed.

Complete the company’s planning budget for August.

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:

Solution

Lavage Rapide Planning Budget For the Month Ending August 31 Cars washed 8200 Revenue 54940 Expenses: Cleaning supplies 5740 Electricity 2038 Maintenance 2460 Wages and salaries 7280 Depreciation 8200 Rent 2100 Administrative expenses 1828 Total expense 29646 Net operating income 25294