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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 estimates concerning

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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 estimates concerning the company's costs: Fixed Cost per Month Cleaning supplies Electricity Maintenance Wages and salaries) Depreciation Rent Administrative expenses Cost per Car Washed $0.70 $1,200 50.00 $0.25 $ 4,000 $0.30 $ 8,200 $1,900 $1,600 $ 0.02 For example, electricity costs should be $1,200 per month plus $0.08 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.80 per car washed.

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