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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
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 Cost per Car Washed Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 0.50 $ 1,200 $ 0.08 $ 0.10 $ 4,800 $ 0.20 $8,100 $ 1,800 $ 1,500 $ 0.04 For example, electricity costs should be $1,200 per month plus $0.08 per car washed. The company actually washed 8,400 cars in August and collected an average of $6.30 per car washed.
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