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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 data concerning the

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the companys costs:

Fixed Cost per Month Cost per Car Washed
Cleaning supplies $ 0.70
Electricity $ 1,000 $ 0.10
Maintenance $ 0.30
Wages and salaries $ 4,800 $ 0.40
Depreciation $ 8,200
Rent $ 1,800
Administrative expenses $ 1,700 $ 0.04

For example, electricity costs are $1,000 per month plus $0.10 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.30 per car washed.

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