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 $ 1,100 $ 0.09 Maintenance $ 0.25 Wages and salaries $ 4,700 $ 0.20 Depreciation $ 8,300 Rent $ 2,000 Administrative expenses $ 1,800 $ 0.03 For example, electricity costs should be $1,100 per month plus $0.09 per car washed. The company expects to wash 8,000 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 8,100 Revenue $ 52,500

Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed \begin{tabular}{r} 8,100 \\ $52,500 \\ \hline 6,100 \\ 1,790 \\ 2,240 \\ 6,660 \\ 8,300 \\ 2,200 \\ 1,940 \\ \hline 29,230 \\ \hline$23,270 \\ \hline \hline \end{tabular} Revenue Expenses: \begin{tabular}{lr} Cleaning supplies & 6,100 \\ Electricity & 1,790 \\ Maintenance & 2,240 \\ Wages and salaries & 6,660 \\ Depreciation & 8,300 \\ Rent & 2,200 \\ Administrative expenses & 1,940 \\ \cline { 2 - 2 } otal expense & 29,230 \\ \cline { 2 - 2 } et operating income & $23,270 \\ \hline \end{tabular} Fixed Cost Cost per \begin{tabular}{lrr} Cleaning supplies & per Month & Car Washed \\ Electricity & & $0.70 \\ Maintenance & $1,100 & $0.09 \\ Wages and salaries & $4,700 & $0.25 \\ Depreciation & $8,300 & \\ Rent & $2,000 & \\ Administrative expenses & $1,800 & $0.03 \end{tabular}