Chapter 10 Homework Problem 1 Answered

# Chapter 10 Homework Problem 1 Answered - expects to wash...

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Chapter 10 Homework Problem 1 Answered 1. 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 \$.73 Electricity \$1,120 \$.10 Maintenance \$.18 Wages and salaries \$4,900 \$.13 Depreciation \$5,890 Rent \$7,800 Administrative expenses \$4,000 \$.05 For example, electricity costs are \$1,120 per month plus \$.10 per car washed. The company
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Unformatted text preview: expects to wash 9,090 cars in August and to collect an average of \$4.80 per car washed. Required: Prepare the company's planning budget for August. (Round your answers to the nearest dollar amount. Input all amounts as positive values. Omit the "\$" sign in your response.) Lavage Rapide Planning Budget For the Month Ended August 31 Revenue \$43,632 Expenses: Cleaning supplies 6,636 Electricity 2,029 Maintenance 1,636 Wages and salaries 6,082 Depreciation 5,890 Rent 7,800 Administrative expenses 4,455 Total expense 34,528 Net operating income \$9,104...
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## This note was uploaded on 10/17/2011 for the course ACCT 206 taught by Professor Dr.zachry during the Spring '11 term at Nicholls State.

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