Different range of demands for vehicle cleaning

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Reference no: EM131379873

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 breakeven points, and recommend best location for different range of demands for vehicle cleaning.

Location Fixed Cost( $) Variable Cost ($)

Pearland (A) 350,000 5

Sugarland (B) 170,000 25

Woodland © 100,000 40

Katy (D) 250,000 20

Reference no: EM131379873

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