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Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company's
Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company's costs Cost per Car Washed $0.40 $0.10 $ 0.15 0.20 Fixed Cost per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,300 $4,600 $ 8,100 $2,200 $1,700 0.01 For example, electricity costs are $1,300 per month plus $0.10 per car washed. The company actually washed 8,000 cars in August. The company expected to collect an average of $6.60 per car washed The actual operating results for August appear below Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue 8,000 $ 52,745 Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent 3,610 2,220 1,770 7,130 8,100 2,200 1,855 Administrative expenses Total expense 26,885 Net operating income $ 25,860
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