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Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following tab provides estimates concerning the

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following tab provides estimates concerning the company's costs:
Fixed Cost per Month
Cost per Car Washed
Cleaning supplies
Electricity
Maintenance
$ 1,300
$ 0.70
$ 0.08
$ 0.10
Wages and salaries
$ 4,600
$ 0.30
Depreciation
$ 8,200
Rent
$ 1,800
Administrative expenses
3
$ 1,700
$ 0.01
For example, electricity costs should be $1,300 per month plus $0.08 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.50 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
Expenses:
$ 54,100
Cleaning supplies
Flectricit
6,100
1919
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