, 31.07.2022 01:40 kimlyn58p0wyn0

# The marginal revenue lies the demand curve because there is a(n) effect whenever the price is lowered

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 \$ 0.70 electricity \$ 1,400 \$ 0.07 maintenance \$ 0.15 wages and salaries \$ 4,900 \$ 0.30 depreciation \$ 8,300 rent \$ 1,900 administrative expenses \$ 1,400 \$ 0.03 for example, electricity costs are \$1,400 per month plus \$0.07 per car washed. the company expects to wash 8,000 cars in august and to collect an average of \$6.50 per car washed. the actual operating results for august appear below. lavage rapide income statement for the month ended august 31 actual cars washed 8,100 revenue \$ 54,100 expenses: cleaning supplies 6,100 electricity 1,930 maintenance 1,440 wages and salaries 7,660 depreciation 8,300 rent 2,100 administrative expenses 1,540 total expense 29,070 net operating income \$ 25,030 required: calculate the company's revenue and spending variances for august.