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An automated car wash called Jet Express outside a large Texas city on the beltway is deading whether to build and install one dedicated
An automated car wash called Jet Express outside a large Texas city on the beltway is deading whether to build and install one dedicated vehicle wash line or have two parallel wash lines There are no other car washes at this intersection and there will be none because all the land is developed. The second line allows for some economies of scale in total cost. The monthly fixed cost of one wash line is $14,500 per month or $174,000 per year. This indudes the mortgage payment, taxes on the building, and wash equipment. The variable cost for this single line is $19 per vehicle. The fixed cost for two wash lines is $24,500 per month or $294,000 per year, and the variable cost to operate two lines is $15 per vehicle because some wash crews can work both lines. The price of the average interior and exterior car wash is $29. Use the Excel template Break-Even in MindTap to answer the following questions: a. What is the break-even quantity for one and two automated wash line? Round your answers to the nearest whole number For one wash line For two wash lines: vehicles per year vehicles per year b. Annual forecasts of demand for this site ranges from 17,400 to 34,000 per year Calculate the net profit/loss of the site in each of the following situations. Round your answers to the newest dolar. If your answer is zeru, enter "0". Use a minus sign to enter loss, if any. wash line 17,400 vehicles $ $ 26,100 vehicles S . 34,800 vehicles S $ Two wash lines
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