Use break even analysis, Car Wash Intl. is considering four

Use break even analysis

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Reference no: EM131379885

Car Wash Intl. is considering four possible sites for its new operation in Houston area. In the past three years, they had witnessed growth in demand for car washes from 2 thousand vehicles a year, to 6 thousand. With a purchase of new automated machine, they expect to wash 10,000 vehicles. Based on the information provided below, use break even analysis, plot break-even graph with break-even points and recommend best location for different range of demands for vehicle cleaning

Location

Pearland (A) Sugarland (B) Woodland © Katy (D)

Fixed Cost( $)

350,000 170,000 100,000 250,000

Variable Cost ($)

5 25 40 20

Reference no: EM131379885

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