John is considering opening a Fast 'n Clean Car Service Center. He estimates that the following...

Transcribed Image Text:

John is considering opening a Fast 'n Clean Car Service Center. He estimates that the following costs will be incurred during his first year of operations: Rent $9,200, Depreciation on equipment $7,000, Wages $16,400, Motor oil $2 per quart. He estimates that each oil change will require 5 quarts of oil. Oil filters will cost $3.00 each. He must also pay The Fast 'n Clean Corporation a franchise fee of $1.10 per oil change since he will operate the business as a franchise. In addition, utility costs are expected vary with the quantity of oil changes as follows: Quantity of Oil Changes Utility Costs 4,200 $6,820 6,200 $8,300 9.200 $10,600 12,200 $13,600 14,400 $16,000 John anticipates that he can provide the oil change service with a filter at $26.88 each. John is considering opening a Fast 'n Clean Car Service Center. He estimates that the following costs will be incurred during his first year of operations: Rent $9,200, Depreciation on equipment $7,000, Wages $16,400, Motor oil $2 per quart. He estimates that each oil change will require 5 quarts of oil. Oil filters will cost $3.00 each. He must also pay The Fast 'n Clean Corporation a franchise fee of $1.10 per oil change since he will operate the business as a franchise. In addition, utility costs are expected vary with the quantity of oil changes as follows: Quantity of Oil Changes Utility Costs 4,200 $6,820 6,200 $8,300 9.200 $10,600 12,200 $13,600 14,400 $16,000 John anticipates that he can provide the oil change service with a filter at $26.88 each.