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Lavage Rapide is a Canadian company that owns and operates a large automatic car wash...

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Accounting

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the companys costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.70 Electricity $ 1,100 $ 0.09 Maintenance $ 0.10 Wages and salaries $ 4,600 $ 0.30 Depreciation $ 8,400 Rent $ 1,800 Administrative expenses $ 1,600 $ 0.04 For example, electricity costs should be $1,100 per month plus $0.09 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.20 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,100 Revenue $ 51,700 Expenses: Cleaning supplies 6,100 Electricity 1,790 Maintenance 1,040 Wages and salaries 7,360 Depreciation 8,400 Rent 2,000 Administrative expenses 1,820 Total expense 28,510 Net operating income $ 23,190

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