=+3-20 K Account analysis method OBJECTIVE 1 Matt operates a car wash. Incoming cars are put on an automatic conveyor belt which activates when a car is placed on it. Cars are washed as the conveyor belt carries them from the start station to the finish station. After a car moves off the conveyor belt, it is dried manually. Workers then clean and vacuum the inside of the car. Matt serviced 80000 cars in 2014. Matt reports the following costs for 2014.

Account description Costs Car wash labour $260 000 Soap, cloth and supplies 42 000 Water 38 000 Electric power to move conveyor belt 72 000 Depreciation 64 000 Salaries 46 000 Required 1 Classify each account as variable or fixed with respect to the number of cars washed. Explain.