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		$ 0.60
Electricity	$ 1,400	$ 0.07
Maintenance		$ 0.15
Wages and salaries	$ 4,100	$ 0.30
Depreciation	$ 8,100
Rent	$ 2,000
Administrative expenses	$ 1,300	$ 0.04

For example, electricity costs should be $1,400 per month plus $0.07 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.50 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	$ 56,700
Expenses:
Cleaning supplies	5,540
Electricity	1,958
Maintenance	1,500
Wages and salaries	6,980
Depreciation	8,100
Rent	2,200
Administrative expenses	1,536
Total expense	27,814
Net operating income	$ 28,886