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 $ 0.50 Electricity $ 1,400 $ 0.06 Maintenance $ 0.15 Wages and salaries $ 4,500 $ 0.30 Depreciation $ 8,300 Rent $ 1,900 Administrative expenses $ 1,600 $ 0.04 For example, electricity costs should be $1,400 per month plus $0.06 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.10 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 8,300 Revenue $ 52,120 Expenses: Cleaning supplies 4,600 Electricity 1,862 Maintenance 1,470 Wages and salaries 7,320 Depreciation 8,300 Rent 2,100 Administrative expenses 1,828 Total expense 27,480 Net operating income $ 24,640