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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.
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