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: Fixed Cost per Month Cost per Car Washed Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $0.90 $ 3,450 0.30 0.50 6,600 0.60 10,200 4,000 3,740 0.07 For example, electricity costs are $3,450 per month plus $0.30 per car washed. The company expects to wash 9,900 cars in October and to collect an average of $7.80 per car washed. Auto Lavage's actual level of activity was 10,000 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 10,000 Sales $79,900 Variable expenses: Cleaning supplies 9,850 Electricity 3,082 Maintenance 4,525 Wages and salaries 6,250 Administrative 790 Fixed expenses: Electricity 3,540 Wages and salaries 6,600 Depreciation 10,200 Rent 4,000 Administrative 3,645 Total expense 52,482 Net operating income $27,418