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: Cleaning supplies Electricity Maintenance For Actual cars washed Revenue Wages and salaries Depreciation Rent Administrative expenses $ 0.01 For example, electricity costs should be $1,500 per month plus $0.09 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.80 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement Expenses: the Month Ended August 31 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Fixed Cost Cost per per Month Car Washed $ 0.70 $ 1,500 $ 0.09 $ 4,100 $ 8,400 $ 2,200 $1,700 Administrative expenses Total expense Net operating income 8,400 $ 58,540 6,310 2,217 2,730 $ 0.30 $ 0.30 6,950 8,400 2,400 1,932 30,939 $ 27,601
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: Cleaning supplies Electricity Maintenance For Actual cars washed Revenue Wages and salaries Depreciation Rent Administrative expenses $ 0.01 For example, electricity costs should be $1,500 per month plus $0.09 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.80 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement Expenses: the Month Ended August 31 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Fixed Cost Cost per per Month Car Washed $ 0.70 $ 1,500 $ 0.09 $ 4,100 $ 8,400 $ 2,200 $1,700 Administrative expenses Total expense Net operating income 8,400 $ 58,540 6,310 2,217 2,730 $ 0.30 $ 0.30 6,950 8,400 2,400 1,932 30,939 $ 27,601
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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