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avage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the companys costs: Fixed Cost per

avage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the companys costs:

Fixed Cost per Month Cost per Car Washed
Cleaning supplies $ 0.60
Electricity $ 1,400 $ 0.07
Maintenance $ 0.20
Wages and salaries $ 4,200 $ 0.20
Depreciation $ 8,300
Rent $ 2,100
Administrative expenses $ 1,600 $ 0.03

For example, electricity costs should be $1,400 per month plus $0.07 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.70 per car washed. The company actually washed 8,300 cars in August.

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