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Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: For example, electricity

image text in transcribedimage text in transcribed Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: For example, electricity costs should be $1,500 per month plus $0.08 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.20 per car washed. The actual operating results for August are as follows: \begin{tabular}{lr} \multicolumn{2}{c}{LavageRapideIncomeStatement} \\ For the Month Ended August & \\ \hline Actual cars washed & 8,200 \\ Revenue & $52,320 \\ Expenses: & \\ Cleaning supplies & 6,170 \\ Electricity & 2,118 \\ Maintenance & 2,265 \\ Wages and salaries & 7,590 \\ Depreciation & 8,100 \\ Rent & 2,300 \\ Administrative expenses & 1,581 \\ Total expenses & 30,124 \\ Net operating income & $22,196 \\ \hline \hline \end{tabular}

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