Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost Cost per per Month Car Washed Cleaning supplies Electricity Maintenance $0.70 $1,300 $0.08 $0.25 Wages and salaries Depreciation Rent Administrative expenses $4,900 $8,200 $1,800 $1,700 $0.30 $0.05 For example, electricity costs are $1,300 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.60 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 8,500 Actual cars washed Revenue $ 57,540 Expenses: Cleaning supplies Electricity 6,380 1,942 2,340 7,780 8,200 2,000 Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense 2,020 30,662 $ 26,878 Net operating income

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost Cost per per Month Car Washed Cleaning supplies Electricity Maintenance $0.70 $1,300 $0.08 $0.25 Wages and salaries Depreciation Rent Administrative expenses $4,900 $8,200 $1,800 $1,700 $0.30 $0.05 For example, electricity costs are $1,300 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.60 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 8,500 Actual cars washed Revenue $ 57,540 Expenses: Cleaning supplies Electricity 6,380 1,942 2,340 7,780 8,200 2,000 Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense 2,020 30,662 $ 26,878 Net operating income

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4EA: Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on...

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