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Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The follow table provides data concerning the company's
Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The follow table provides data concerning the company's costs Cost per Car Washed $0.80 $0.05 0.25 $0.30 Fixed Cost per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,500 $4,400 $8,500 $2,000 $1,600 $0.04 For example, electricity costs are $1,500 per month plus $0.05 per car washed. The company expects to wash 8,200 cars i August and to collect an average of $6.00 per car washed The actual operating results for August appear below Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue Expenses 8,300 $51,300 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses 7,060 1,880 2,290 7,220 8,500 2,200 1,828 30,978 $20,322 otal expense Net operating income
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