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Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the companys costs: Fixed Cost per
Lavage Rapide 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 $ 0.50 Electricity $ 1,500 $ 0.10 Maintenance $ 0.25 Wages and salaries $ 4,600 $ 0.20 Depreciation $ 8,100 Rent $ 1,800 Administrative expenses $ 1,400 $ 0.04 For example, electricity costs should be $1,500 per month plus $0.10 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.70 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 $ 58,380 Expenses: Cleaning supplies 4,700 El
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