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 company's costs: Fixed Cost per Cost per Month $ 1,200 cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Car Washed $ 0.80 $ 0.09 $ 0.15 $ 0.40 $ 4,000 $ 8,400 $ 1,800 $ 1,700 $ 0.01 For example, electricity costs should be $1,200 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.20 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 $ 54,180 Expenses: cleaning supplies 7,220 Electricity 1,926 Maintenance 1,500 Wages and salaries 7,720 Depreciation 8,400 Rent 2,000 Administrative expenses 1,684 Total expense 30,450 Net operating income $ 23,730 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 company's costs: Fixed Cost per Cost per Month $ 1,200 cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Car Washed $ 0.80 $ 0.09 $ 0.15 $ 0.40 $ 4,000 $ 8,400 $ 1,800 $ 1,700 $ 0.01 For example, electricity costs should be $1,200 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.20 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 $ 54,180 Expenses: cleaning supplies 7,220 Electricity 1,926 Maintenance 1,500 Wages and salaries 7,720 Depreciation 8,400 Rent 2,000 Administrative expenses 1,684 Total expense 30,450 Net operating income $ 23,730