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4 Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates
4 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: 10 Cleaning supplies points eBook Print Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses References Fixed Cost Cost per per Month Car Washed $ 0.80 $ 1,200 $ 0.06 $ 0.15 $ 4,400 $ 0.40 $ 8,300 $ 1,900 $ 1,500 $ 0.02 For example, electricity costs should be $1,200 per month plus $0.06 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.30 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 $ 54,390 7,140 1,668 1,485 8,080 8,300 2,100 1,566 30,339 $ 24,051
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