Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the companys expected costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.70 Electricity $ 1,400 0.10 Maintenance 0.30 Wages and salaries 4,700 0.40 Depreciation 8,300 Rent 2,100 Administrative expenses 1,800 0.05 For example, electricity costs are $1,400 per month plus $0.10 per car washed. The company expects to wash 8,000 cars in October and to collect an average of $5.90 per car washed. Auto Lavages actual level of activity was 8,100 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 8,100 Sales $ 49,300 Variable expenses: Cleaning supplies 6,075 Electricity 891 Maintenance 2,187 Wages and salaries 3,402 Administrative 486 Fixed expenses: Electricity 1,450 Wages and salaries 4,700 Depreciation 8,300 Rent 2,100 Administrative 1,745 Total expense 31,336 Net operating income $ 17,964