Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the companys costs:

Cost per Car Washed 0.80 $0.15 0.20 0.30 Fixed Cost per Montlh Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,200 $ 5,000 $ 6,000 $ 8,000 $ 4,000 0.10 For example, electricity costs are $1,200 per month plus $0.15 per car washed. The company expected to wash 9,000 cars in August and to collect an average of $4.90 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue 8,800 $ 43,080 Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses 7,560 2,670 2,260 8,500 6,000 8,000 4,950 Total expense 39,940 Net operating income $ 3,140