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Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the companys expected costs:

	Fixed Cost per Month			Cost per Car Washed
Cleaning supplies				$	1.10
Electricity	$	2,500			0.50
Maintenance					0.70
Wages and salaries		5,700			0.80
Depreciation		9,300
Rent		3,100
Administrative expenses		2,800			0.04

For example, electricity costs are $2,500 per month plus $0.50 per car washed. The company expects to wash 9,000 cars in October and to collect an average of $8.80 per car washed.

Auto Lavages actual level of activity was 9,100 cars. The actual revenues and expenses for October are given below:

Auto Lavage Income Statement For the Month Ended October 31
Actual cars washed		9,100
Sales	$	82,600
Variable expenses:
Cleaning supplies		10,510
Electricity		4,622
Maintenance		6,050
Wages and salaries		7,450
Administrative		410
Fixed expenses:
Electricity		2,550
Wages and salaries		5,700
Depreciation		9,300
Rent		3,100
Administrative		2,745
Total expense		52,437
Net operating income	$	30,163

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