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8. Sparkle Clean washes vehicles using a no-hands approach. Business is good but Samuel, the manager, has noticed that customers complain because there are streaks
8.
Sparkle Clean washes vehicles using a no-hands approach. Business is good but Samuel, the manager, has noticed that customers complain because there are streaks on their vehicles at pickup. SparkleClean warrants that each vehicle will sparkle at delivery and charges $23 for each vehicle. (Click the icon to view additional information.) Read the requirements. Requirement 1. Should SparkleClean implement Samuel's idea? Show your calculations. Begin by calculating the net relevant benefit under the current method of washing cars. (If an input field is not used in the table, leave the input field empty; do not select a label or enter a zero.) Revenues Number of washes Net relevant benefit Next, calculate the net relevant benefit under the modified method of washing cars. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) Revenues Cost of hand finish Net relevant benefit More Info Sparkle Clean washes 130 vehicles each day and last month, 40% of them required a hand finish. Each hand wash costs $10. Samuel believes the problem can be eliminated by a prewash (costing $4 per vehicle) and an equipment calibration at the start of each day, which will reduce the number of vehicles washed each day by 14, but will decrease the vehicles requiring a hand finish from 40% to 10%
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