Lavage Rapide is a Canadian company that 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 $ 0.70 Electricity $ 1,400 $ 0.09 Maintenance $ 0.25 Wages and salaries $ 4,200 $ 0.30 Depreciation $ 8,500 Rent $ 2,200 Administrative expenses $ 1,600 $ 0.04 For example, electricity costs should be $1,400 per month plus $0.09 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.30 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,600 Revenue $ 55,650 Expenses: Cleaning supplies 6,450 Electricity 2,135 Maintenance 2,365 Wages and salaries 7,110 Depreciation 8,500 Rent 2,400 Administrative expenses 1,840 Total expense 30,800 Net operating income $ 24,850