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2 Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the company's expected costs Cost per Car Washed 0.70 $ 0.10 $0.30 $ 0.40 Fixed Cost per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 3,360 $ 6,500 $10,100 $ 3,900 $ 3,630 $0.06 For example, electricity costs are $3,360 per month plus S0.10 per car washed. The company expects to wash 9,800 cars in October and to collect an average of $7.70 per car washed Auto Lavage's actual level of activity was 9,900 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed Sales 9,900 $78,500 Variable expenses Cleaning supplies Electricity Maintenance Wages and salaries Administrative 7,250 1,085 2,645 4,350 690 Fixed expenses Electricity Wages and salaries Depreciation Rent Administrative 3,430 6,500 10,100 3,900 3,545 Total expense 43,495 Net operating income $ 35,005