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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: Cost per Car Washed Fixed Cost per Month Cleaning supplies $ 0.80 Electricity $ 1,100 $ 0.09 Maintenance $ 0.30 Wages and salaries $ 4,700 $ 0.40 Depreciation Rent $ 8,400 $ 2,200 Administrative expenses $ 1,700 $ 0.02 For example, electricity costs should be $1,100 per month plus $0.09 per car washed. The company actually washed 8,500 cars in August and collected an average of $6.20 per car washed.
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