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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 $1,300 $ 4,200 Cost per Car Washed $0.40 $ 0.05 50.201 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 0.20 $ 8,300 $ 2,100 $ 1,800 $ 0.02 For example, electricity costs should be $1,300 per month plus $0.05 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.70 per car washed.
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