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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company's costs:
| Â |
Fixed Cost Per Month |
Cost per Car Washed |
|
  Cleaning supplies |
 |
$0.80 Â Â Â Â |
|
  Electricity |
$1,200 Â Â Â |
$0.15 Â Â Â Â |
|
  Maintenance |
 |
$0.20 Â Â Â Â |
|
  Wages and salaries |
$5,000 Â Â Â |
$0.30 Â Â Â Â |
|
  Depreciation |
$6,000 Â Â Â |
 |
|
  Rent |
$8,000 Â Â Â |
 |
|
  Administrative expenses |
$4,000 Â Â Â |
$0.10 Â Â Â Â |
For example, electricity costs are $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed.
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