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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 $ 0.40
Electricity $ 1,200 $ 0.09
Maintenance $ 0.15
Wages and salaries $ 5,000 $ 0.40
Depreciation $ 8,100
Rent $ 2,100
Administrative expenses $ 1,500 $ 0.04

For example, electricity costs should be $1,200 per month plus $0.09 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.90 per car washed. The company actually washed 8,100 cars in August.

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