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Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed S8.50 S8.09 S8.25 S8.20 $1,180 $4, 900 $8, 900 $1,980 $1,7ee $9-02 For example, electricity costs are $1,100 per month plus $0.09 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.30 per car washed. The actual operating results for August appear below Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8, 300 S 53, 768 Expenses supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses 4, 600 1, 888 2, 290 6,800 8,800 2, 180 1, 764 26, 562 S 27, 198 Total expense Net operating income
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