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:
|
Fixed Cost
per Month |
|
Cost per
Car Washed |
| Cleaning supplies |
|
|
|
$ |
0.50 |
| Electricity |
$ |
1,300 |
|
$ |
0.06 |
| Maintenance |
|
|
|
$ |
0.10 |
| Wages and salaries |
$ |
4,800 |
|
$ |
0.30 |
| Depreciation |
$ |
8,100 |
|
|
|
| Rent |
$ |
2,200 |
|
|
|
| Administrative expenses |
$ |
1,300 |
|
$ |
0.03 |
|
For example, electricity costs are $1,300 per month plus $0.06 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.20 per car washed.
|
|
Complete the company's planning budget for August.
|