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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 per Manth Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $0.50 $1,300 $ 0.06 $ 0.25 $ 4,208 $ 0.30 $8,400 $ 2,000 $1,500 $0.04 For example, electricity costs should be $1,300 per month plus $0.06 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.10 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 8,100 $ 50,900 4,500 1,750 creen Sh 11:40 1
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