Question
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
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 $ 0.15 Wages and salaries $ 4,100 $ 0.30 Depreciation $ 8,000 Rent $ 2,100 Administrative expenses $ 1,400 $ 0.04 For example, electricity costs should be $1,400 per month plus $0.09 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.10 per car washed. The company actually washed 8,200 cars in August.
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