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 $2,150 0.20 0.40 5,400 0.50 9,000 2,800 2,520 0.05 For example, electricity costs are $2,150 per month plus $0.20 per car washed. The company expects to wash 8,700 cars in October and to collect an average of $6.60 per car washed. Auto Lavage's actual level of activity was 8,800 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 8,800 Sales $60,300 Variable expenses: Cleaning supplies 7,640 Electricity 1,820 Maintenance 2,990 Wages and salaries 4,760 Administrative 520 Fixed expenses: Electricity 2,220 Wages and salaries 5,400 Depreciation 9,000 Rent 2,800 Administrative 2,445 Total expense 39,595 Net operating income $20,705