Marisa has recently opened Rapid Oil Change, a service station in a small but growing community. Her strategy is to provide a low cost, high

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Marisa has recently opened Rapid Oil Change, a service station in a small but growing community. Her strategy is to provide a low cost, high quality service in a customer-friendly atmosphere. Marisa estimated that there are approximately 5,000 families in the community each with an average of two cars. Given the average commuting distance driven in these cars, she estimates that each car will need an oil change approximately every four months. Marisa hopes to capture 40% of this market. After four months of operation, Marisa has serviced 4,335 cars and 100 new families (each with 2 cars) have moved into the area. The average contribution margin is $15 per oil change.

Required:

A. Calculate the industry market size.

B. Calculate the market share variance.

C. Explain what has happened to Marisa. What other key performance indicators would you recommend Marisa monitor to be sure she is achieving her goals?