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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

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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 the company's costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies. $ 0.50 Electricity $ 1,200 $ 0.08 Maintenance $ 0.20 Wages and salaries. $ 4,200 $0.40 Depreciation $ 8,300 $ 1,800. $ 1,500 $ 0.02 Rent Administrative expenses For example, electricity costs should be $1,200 per month plus $0.08 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.60 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 Total expense Administrative expenses Net operating income 8,300 $ 56,220 4,600 1,826 1,080. 7,840 8,300 2,000 1,564 28,010 $28,210 < Previ 5 of 5 Next

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