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				$	0.50
Electricity	$	1,100		$	0.08
Maintenance				$	0.20
Wages and salaries	$	5,000		$	0.40
Depreciation	$	8,000
Rent	$	1,900
Administrative expenses	$	1,400		$	0.03

For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.30 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		8,400
Revenue	$	54,390
Expenses:
Cleaning supplies		4,650
Electricity		1,734
Maintenance		1,900
Wages and salaries		8,680
Depreciation		8,000
Rent		2,100
Administrative expenses		1,549
Total expense		28,613
Net operating income	$	25,777