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 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses per Month Car Washed $ 0.70 $0.10 $1,400 $ 0.15 $ 4,300 $ 0.30 $ 8,000 $1,900 $1,700 $ 0.04 For example, electricity costs should be $1,400 per month plus $0.10 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.50 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 8,300 Revenue $55,400 Expenses Cleaning supplies 6,240 Electricity 2,190 Maintenance 1,470 Wages and salaries 7,120 Depreciation 8,000 Rent 2,100 Administrative expenses 1,928 Total expense 29,048 Net operating income $26,352