ide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company’s costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.40 Electricity $ 1,200 $ 0.07 Maintenance $ 0.15 Wages and salaries $ 4,100 $ 0.20 Depreciation $ 8,300
ide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company’s costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.40 Electricity $ 1,200 $ 0.07 Maintenance $ 0.15 Wages and salaries $ 4,100 $ 0.20 Depreciation $ 8,300
Chapter7: Budgeting
Section: Chapter Questions
Problem 9Q: A company has prepared the operating budget and the cash budget. It is now preparing the budgeted...
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Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company’s costs:
Fixed Cost per Month | Cost per Car Washed | |
---|---|---|
Cleaning supplies | $ 0.40 | |
Electricity | $ 1,200 | $ 0.07 |
Maintenance | $ 0.15 | |
Wages and salaries | $ 4,100 | $ 0.20 |
Depreciation | $ 8,300 | |
Rent | $ 1,900 | |
Administrative expenses | $ 1,500 | $ 0.02 |
For example, electricity costs should be $1,200 per month plus $0.07 per car washed. The company actually washed 8,500 cars in August and collected an average of $6.90 per car washed.
Required:
Prepare the company’s flexible budget for August.
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