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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 company's
Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the company's costs Cost per Car Washed $0.60 $0.08 $0.20 $0.30 Fixed Cost per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,500 $4,900 $ 8,200 $2,000 $ 1,400 $0.01 For example, electricity costs are $1,500 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in October and to collect an average of $6.10 per car washed The actual operating results for October appear below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed Revenue 8,500 $53,340 Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses 5,540 2,142 1,920 7,780 8,200 2,200 1,384 Total expense 29,166 Net operating income $24.174
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