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 $ 0.70 Electricity $ 1,200 $ 0.07 Maintenance $ 0.30 Wages and salaries $ 5,000 $ 0.40 Depreciation $ 8,000 Rent $ 2,100 Administrative expenses $ 1,600 $ 0.02 For example, electricity costs should be $1,200 per month plus $0.07 per car washed. The company expects to wash 8,100 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 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Rent Administrative expenses Total expense Net operating income 8,200 $ 54,750 6,170 1,737 2,670 8,600 8,000 2,300 1,662 31,139 $ 23,611