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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 companys
Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the companys costs: |
Fixed Cost per Month | Cost per Car Washed |
Cleaning supplies | $ | 0.50 | |||
Electricity | $ | 1,400 | $ | 0.09 | |
Maintenance | $ | 0.20 | |||
Wages and salaries | $ | 4,300 | $ | 0.20 | |
Depreciation | $ | 8,200 | |||
Rent | $ | 1,900 | |||
Administrative expenses | $ | 1,700 | $ | 0.04 | |
For example, electricity costs are $1,400 per month plus $0.09 per car washed. The company actually washed 8,400 cars in August and collected an average of $6.90 per car washed. |
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