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 expected costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month Cost per Car Washed $0.80 $1,950 0.20 0.40 5,200 0.50 8,800 2,600 2,300 0.03 For example, electricity costs are $1,950 per month plus $0.20 per car washed. The company expects to wash 8,500 cars in October and to collect an average of $6.40 per car washed. Auto Lavage's actual level of activity was 8,600 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual care vashed Sales 8,600 $56,700 Variable expenses Cleaning supplies 7,250 Electricity 1,800 Maintenance. 3,000 Wages and salaries 4,560 Administrative 350 Fixed expenses Electricity 2,000 Wages and salaries 5,200 Depreciation 8,800 Rent 2,600 Administrative 2,245 Total expense 37,805 Net operating income $18,895 Check