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: Cost per Car Washed Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month $ 0.80 $ 1,100 $ 0.09 $ 0.30 $ 4,500 $ 0.40 $ 8,100 $ 1,900 $ 1,700 $ 0.03 For example, electricity costs should be $1,100 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.00 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 8,500 $ 52,500 7,220 1,826 2,760 8,220 8,100 2,100 1,852 32,078 $ 20,422