Question - Flexible Budget
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
|
|
$0.80
|
|
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 are $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: Complete the company's planning budget for August.