Construction on the Crane Full-Service Car Wash is nearing completion. The owner is Dave Kear, a retired accounting professor. The car wash is strategically located on a busy street that separates an affuent suburban community from a middle-class community it has two state-of-the-art stalls. Each stall can provide anything from a basic two-stage wash and rinse to a five-stage luxurious bath. It is all "touchless," that is, there are no brushes to potentially damage the car, Outside each stall, there is also 3400 horse-power vacuum. Dave likes to joke that these vacuums are so strong that they will pull the carpet right out of your car if you aren't careful. Dave has some important decisions to make before he can open the car wash. First, he knows that there is one drive-through car wash only a 10 -minute drive away. It is attached to a gas station, it charges $4.90 for a basic wash, and $4.10 if you also buy at least 8 gallons of gas. It is a "brush"-type wash with rotating brush heads. There is also a self-serve 'stand outside your car and spray until you are soaked" ear wash a 15 minute drive away from Dawe's location. He went over and triled this out. He went inrough $3.00 in quarters to get the equivalent of a basic wash. He knows that both of these locations always have long lines, which is one reason why he decided to build a new car wash. Dave is ptinning to offer three levels of wash service-Basic. Deluxe, and Premium. The Basic is all automated: it requires no direct intervention by employees. The Deluge is all automated except that at the end an employee will wipe down the car and will put a Window treatment on the windihield that reduces glare and allows raimwater to run off more quickly. The Premium level is a "pampered" iervice. This will include all the services of the Deluxe, plus a special wax after the machine wax and an employce will vacuum the car, wipe down the entire interlor, and wash the inside of the windows. To provide the Preinlum service, Dawewitf have to hire a couple of "carwash specialists" to do the add tional pamperine. Dave has pulied together the following estimates, based on data he recelved from the focal Chamber of Commerce and information from a trade association. The total estimated number of washes of any type is 45,000 . Dave has invested assets of $393,000. He would like a return on investment (ROI) of 15%. Answer each of the following questions. Dave estimates that of the total 45,000 washes, 20,000 will be Basic, 20,000 will be Deluxe, and 5,000 will be Premium. Calculate the selling price, using cost-plus pricing, that Dave should use for each type of wash to achieve his desired ROI of 15%. (Round answers to 2 decimal places, es. 52.75.] eTextbook and Media Attempts: 0 of 5 used (c) The parts of this question must be completed in order. This part will be available when you complete the part above
