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 $ 0.80 Electricity $ 1,200 $ 0.06 Maintenance $ 0.30 Wages and salaries. $ 5,000 $ 0.30 Depreciation $ 8,400 Rent $ 2,200 Administrative expenses $ 1,600 $ 0.05 For example, electricity costs should be $1,200 per month plus $0.06 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.40 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 Required: 8,500 $ 55,860 7,220 1,674 2,760 7,880 8,400 2,400 1,920 32,254 $ 23,606