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: $ 0.05 For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.40 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 $ 1,100 $ 4,800 $ 8,100 $ 2,100 $ 1,800 Administrative expenses Total expenses Net operating income Cost per Car Washed $ 0.70 $ 0.08 $ 0.25 $0.30 8,200 $ 53,940 6,170 1,718 2,265 7,590 8,100 2,300 2,105 30,248 $ 23,692

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 $ 0.70 Electricity $ 1,100 $ 0.08 Maintenance $ 0.25 Wages and salaries $ 4,800. $ 0.30 Depreciation $8,100 Rent $ 2,100 Administrative expenses $ 1,800 $ 0.05 For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.40 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 8,200 $ 53,940 6,170 1,718 2,265 7,590 8,100 2,300 2,105 30,248 $ 23,692