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Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the company's costs:


 Fixed Cost
per Month
Cost per
Car Washed
  Cleaning supplies  
     
$ 0.50      
  Electricity   $ 1,200       
$ 0.08      
  Maintenance  
     
$ 0.15      
  Wages and salaries   $ 4,500       
$ 0.20      
  Depreciation   $ 8,100       

     
  Rent   $ 2,000       

     
  Administrative expenses   $ 1,500       
$ 0.03      

For example, electricity costs are $1,200 per month plus $.08 per car washed. The company expects to wash 8,500 cars in October and to collect an average of $6.20 per car washed.
Required:

Prepare the company's planning budget for October. (Input all amounts as positive values.)
Auto Lavage
Planning Budget
For the Month Ended October 31
  Revenue $    

  Expenses:   
      Cleaning supplies    
      Electricity    
      Maintenance    
      Wages and salaries    
      Depreciation    
      Rent    
      Administrative expenses    

  Total expense    

  Net operating income $    

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9944567

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