Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Cleaning supplies Electricity Maintenance Cost per Car Washed $0.80 Fixed Cost per Month $1,200 $0.15 $0.20 Wages and salaries $5,000 $0.30 Depreciation $6,000 Rent $8,000 Administrative expenses $4,000 $0.10 For example, electricity costs are $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 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 8,800 $43,080 7,560 2,670 2,260 8,500 6,000 8,000 4,950 39,940 $ 3,140