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 company's costs: Fixed Cost per Month Cost per Car Washed $0.50 $0.09 $0.20 $0.20 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,100 $4,700 $8,500 $2,100 $1,700 $0.01 For example, electricity costs are $1,100 per month plus $0.09 per car washed. The company expects to wash 8,100 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, 200 $ 53,130 Electricity Revenue Expenses: Cleaning supplies M Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 4,550 1,799 1,860 6,680 8,500 2,300 1,681 27, 370 $ 25,760 Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Actual Flexible Results Budget 8,200 Planning Budget Cars washed Revenue $ 53,130 Expenses: 4,550 Cleaning supplies Electricity 1,799 Maintenance 1,860 Wages and salaries 6,680 Depreciation 8,500 Rent 2,300 Administrative expenses 1,681 Total expense 27,370 Net operating income $ 25,760