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 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses per Month Cost per Car Washed $1.00 $2,360 0.40 0.60 5,600 0.70 9,200 3,000 2,740 0.07 For example, electricity costs are $2,360 per month plus $0.40 per car washed. The company expects to wash 8,900 cars in October and to collect an average of $8.70 per car washed. Auto Lavage's actual level of activity was 9,000 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 9,000 Sales $82,300 Variable expenses: Cleaning supplies 9,535 Electricity 3,640 Maintenance 5,200 Wages and salaries 6,503 Administrative 720 Fixed expenses: Electricity 2,440 Wages and salaries 5,600 Depreciation 9,200 Rent 3,000 Administrative 2,645 Total expense 48,483 Net operating income $33,817