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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 Cost per per Month Car Washed) Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses. $0.50 $ 1,200 $ 0.08 $ 0.10 $ 4,100 $ 0.301 $ 8,500 $ 2,100 $ 1,500 $ 0.05 For example, electricity costs should be $1,200 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.80 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cans washed Revenue 8,500 $ 59,220
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