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Business, 01.07.2019 16:10 dancer2814

Lavage rapide is a canadian company that owns and operates a large automatic car wash facility near montreal. the following table provides data concerning the company’s costs: fixed cost per month cost per car washed cleaning supplies $ 0.80 electricity $ 1,200 $ 0.08 maintenance $ 0.25 wages and salaries $ 4,700 $ 0.20 depreciation $ 8,000 rent $ 2,100 administrative expenses $ 1,400 $ 0.03 for example, electricity costs are $1,200 per month plus $0.08 per car washed. the company expects to wash 8,100 cars in august and to collect an average of $6.80 per car washed. the actual operating results for august appear below. lavage rapide income statement for the month ended august 31 actual cars washed 8,200 revenue $ 57,180 expenses: cleaning supplies 6,980 electricity 1,818 maintenance 2,265 wages and salaries 6,680 depreciation 8,000 rent 2,300 administrative expenses 1,543 total expense 29,586 net operating income $ 27,594 required: calculate the company's revenue and spending variances for august.

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