Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent Actual cars washed Revenue Expenses: $ 0.02 For example, electricity costs should be $1,400 per month plus $0.10 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.50 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Fixed Cost per Month $ 1,400 $ 4,200 $ 8,400 $ 2,000 $ 1,600 Administrative expenses Total expenses Net operating income Cost per Car Washed $ 0.40 $ 0.10 $ 0.15 $ 0.30 8,500 $ 56,700 3,860 2,210 1,500 7,080 8,400 2,200 1,668 26,918 $ 29,782

Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.40 Electricity $ 1,400 $ 0.10 Maintenance $ 0.15 Wages and salaries $ 4,200 $ 0.30 Depreciation $ 8,400 Rent Administrative expenses $ 2,000 $1,600 $ 0.02 For example, electricity costs should be $1,400 per month plus $0.10 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.50 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 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expenses Net operating income 8,500 $ 56,700 3,860. 2,210 1,500 7,080 8,400 2,200 1,668 26,918 $ 29,782