Imagine that I am on a Cash Analysis Team and it is my job to find a way to increase cash flow and/ or advise the boss of what his current strategy would do...

I would like us to start putting emphasis on increasing our cash on hand and would like us to pursue an even more revenue minded strategy in the next month. We have been generating solid revenue lately, but I want to know if a 20% increase in the price of our car washes will lead to a 10% increase in total revenues next month.

I would like you to analyze our current pricing scheme on our signature Suds car wash service and give me a recommendation on how we can increase our cash flow. Our sales department has estimated the following monthly demand curve for our service:Q= 260 -5Pand we are currently charging $30 per car wash.

I have always thought our prices were a little low compared to our competitors, so I am inclined to increase prices to boost cash flow as much as possible. Let me know if you are thinking the same way, and what size of an increase our customer base can support.