Question
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
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 (15 points), plot break-even graph with breakeven
points (15 points), and recommend best location for different range of demands for vehicle
cleaning (5 points).
Location Fixed Cost( $) Variable Cost ($)
Pearland (A) 350,000 5
Sugarland (B) 170,000 25
Woodland 100,000 40
Katy (D) 250,000 20
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