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				$	0.50
Electricity	$	1,200		$	0.08
Maintenance				$	0.30
Wages and salaries	$	4,500		$	0.30
Depreciation	$	8,400
Rent	$	1,900
Administrative expenses	$	1,500		$	0.05

For example, electricity costs are $1,200 per month plus $0.08 per car washed. The company expects to wash 8,400 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		8,500
Revenue	$	55,020
Expenses:
Cleaning supplies		4,700
Electricity		1,842
Maintenance		2,760
Wages and salaries		7,380
Depreciation		8,400
Rent		2,100
Administrative expenses		1,820
Total expense		29,002
Net operating income	$	26,018