Question
3 Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates
3 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: 4 points Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses ellock Rent References Fixed Cost per Month Cost per Car Washed 5 0.60 $1,200 $ 0.00 $ 0.15 $ 4,600 $ 0.30 $ 8,300 $1,900 $ 1,700 $ 0.01 For example, electricity costs should be $1,200 per month plus $0.08 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $5.90 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 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 8,400 $51,070 5,480 1,834) 1,485 7,450 8,300 2,100 1,683 28,332 $ 22,738
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