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Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the companys
Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the companys costs: |
Fixed Cost per Month | Cost per Car Washed |
Cleaning supplies | $ | 0.40 | |||
Electricity | $ | 1,300 | $ | 0.05 | |
Maintenance | $ | 0.10 | |||
Wages and salaries | $ | 4,300 | $ | 0.20 | |
Depreciation | $ | 8,000 | |||
Rent | $ | 1,900 | |||
Administrative expenses | $ | 1,600 | $ | 0.01 | |
For example, electricity costs are $1,300 per month plus $0.05 per car washed. The company actually washed 8,300 cars in October and to collect an average of $6.60 per car washed.
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