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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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