Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility...
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Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost Cost per per Month Car Washed Cleaning supplies 0.80 Electricity 0.15 1,200 0.20 Maintenance 5,000 0.30 Wages and salaries 6,000 Depreciation 8,000 Rent 4,000 0.10 Administrative expenses For example, electricity costs are $1,200 per month plus $0.15 per car washed. The company expected to wash 9,000 cars in August and to collect an average of $4.90 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 8,800 Actual cars washed 43,080 Revenue Expenses: 7,560 Cleaning supplies Electricity 2,670 2,260 Maintenance 8,500 Wages and salaries 6,000 Depreciation 8,000 Rent 4,950 Administrative expenses 39,940 Total expense 3,140 Net operating income
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