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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

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 companys costs:
Fixed Cost per Month Cost per Car Washed
Cleaning supplies $ 0.80
Electricity $ 1,100 $ 0.08
Maintenance $ 0.15
Wages and salaries $ 4,200 $ 0.20
Depreciation $ 8,300
Rent $ 1,800
Administrative expenses $ 1,500 $ 0.05
For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company actually washed 8,300 cars in August and collected an average of $6.60 per car washed.

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