Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data...
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Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility nearMontreal. The following table provides data concerning the company’s costs: Fixed Cost Cost perper Month Car WashedCleaning supplies $ 0.80Electricity $ 1,300 $ 0.09Maintenance $ 0.25Wages and salaries $ 4,100 $ 0.30Depreciation $ 8,300Rent $ 2,000Administrative expenses $ 1,500 $ 0.01 For example, electricity costs are $1,300 per month plus $0.09 per car washed. The company expects towash 8,200 cars in August and to collect an average of $6.60 per car washed. The actual operating results for August appear below.Lavage Rapide Income StatementFor the Month Ended August 31 Actual cars washed 8,300Revenue $ 56,220Expenses:Cleaning supplies 7,060Electricity 2,008Maintenance 2,290Wages and salaries 6,920Depreciation 8,300Rent 2,200Administrative expenses 1,482Total expense 30,260 Net operating income $ 25,960
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