Lavage Rapide is a Canadian company that owns and operates a large automatic car wash...
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Accounting
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 companys costs:
Fixed Cost per Month | Cost per Car Washed | ||||||
Cleaning supplies | $ | 0.50 | |||||
Electricity | $ | 1,300 | $ | 0.07 | |||
Maintenance | $ | 0.15 | |||||
Wages and salaries | $ | 4,400 | $ | 0.40 | |||
Depreciation | $ | 8,300 | |||||
Rent | $ | 2,200 | |||||
Administrative expenses | $ | 1,500 | $ | 0.02 | |||
For example, electricity costs are $1,300 per month plus $0.07 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.50 per car washed.
The actual operating results for August appear below.
Lavage Rapide | ||
Income Statement | ||
For the Month Ended August 31 | ||
Actual cars washed | 8,400 | |
Revenue | $ | 56,050 |
Expenses: | ||
Cleaning supplies | 4,650 | |
Electricity | 1,851 | |
Maintenance | 1,485 | |
Wages and salaries | 8,080 | |
Depreciation | 8,300 | |
Rent | 2,400 | |
Administrative expenses | 1,566 | |
Total expense | 28,332 | |
Net operating income | $ | 27,718 |
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You can see the logs in the Dashboard.