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				$	0.70
Electricity	$	1,300		$	0.09
Maintenance				$	0.20
Wages and salaries	$	4,700		$	0.20
Depreciation	$	8,200
Rent	$	1,900
Administrative expenses	$	1,300		$	0.03

For example, electricity costs are $1,300 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.30 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		6,380
Electricity		2,026
Maintenance		1,920
Wages and salaries		6,740
Depreciation		8,200
Rent		2,100
Administrative expenses		1,452
Total expense		28,818
Net operating income	$	26,202

Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income