Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. lavage rapide is a canadian company that owns and

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash...

90.2K

Verified Solution

Question

Accounting

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 companys costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.70 Electricity $ 1,100 $ 0.09 Maintenance $ 0.10 Wages and salaries $ 4,600 $ 0.30 Depreciation $ 8,400 Rent $ 1,800 Administrative expenses $ 1,600 $ 0.04 For example, electricity costs should be $1,100 per month plus $0.09 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.20 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,100 Revenue $ 51,700 Expenses: Cleaning supplies 6,100 Electricity 1,790 Maintenance 1,040 Wages and salaries 7,360 Depreciation 8,400 Rent 2,000 Administrative expenses 1,820 Total expense 28,510 Net operating income $ 23,190

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students