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Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table prowides data concerning the company's
Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table prowides data concerning the company's costs Fxed Cost Cost per par Month Car Washed s0.80 0.15 S 0.20 S 0.30 Electricity $1,200 Wages and salaries Rent Administrative expenses $5,000 $6,000 $8,000 54,000 $ 0.10 For example, electricity costs are $1,200 per month plus S0.15 per car washed. The company expects to wash 9,000 cars in August and to coilect an average of $4.90 per car washed The actual operating resuts for Auust appear below Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue Expenses 8,800 43,080 7,560 2,670 2,260 8,500 6,000 B,000 4,960 Cleaning supplies Electricity Wages and salaries Rent Administrative expenses Tohal expense Net operating income S 3,140
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