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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 $ 0.70
Electricity $ 1,200 $ 0.05
Maintenance $ 0.25
Wages and salaries $ 4,500 $ 0.40
Depreciation $ 8,300
Rent $ 2,100
Administrative expenses $ 1,600 $ 0.01
For example, electricity costs should be $1,200 per month plus $0.05 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.50 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 $ 56,050
Expenses:
Cleaning supplies 6,310
Electricity 1,585
Maintenance 2,315
Wages and salaries 8,180
Depreciation 8,300
Rent 2,300
Administrative expenses 1,583
Total expense 30,573
Net operating income $ 25,477Answer is not complete.
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