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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 conceming
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates conceming the company's costs: Fixed Cost Cost per per Month Car Washed Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $0.70 $1,300 5:4,400 $8,500 $ 0.07 5.0.10 3.0.30 $ 1,800- $1,700 $0.02 For example, electricity costs should be $1,300 per month plus $0.07 per car washed. The company expects to wash 8.200 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 Hooth Ended August 31 Actual cans washed Revenue Expenses Cleaning supplies Electricity Maintenance wages and salaries Depreciation Rent Administrative expenses Total expense Net operating incone 8,300 $52,940 6,240 1,844) 1,060 7,220 .see 2,000 1,764 28,628 $ 24, 112
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