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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: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost Cost per per Month Car Washed $0.80 $1,400 $0.09 $ 0.15 $ 4,000 $ 0.30 $ 8,100 $ 1,800 $1,500 $ 0.02 For example, electricity costs should be $1,400 per month plus $0.09 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.20 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 8,600 Revenue $ 54,800 Expenses: Cleaning supplies 7,300 Electricity 2,135 Maintenance 1,515 Wages and salaries 6,910 Depreciation 8,100 Rent 2,000 Proy 1
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