Question: Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company s costs: Fixed Cost

Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the companys costs:
Fixed Cost per MonthCost per Car WashedCleaning supplies$ 0.70Electricity$ 1,500$ 0.09Maintenance$ 0.25Wages and salaries$ 4,400$ 0.40Depreciation$ 8,400Rent$ 1,800Administrative expenses$ 1,600$ 0.02
For example, electricity costs should be $1,500 per month plus $0.09 per car washed. The company actually washed 8,600 cars in August and collected an average of $6.50 per car washed. This average matches the budgeted revenue per car.

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