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Khaled Zaki is running a Fast Oil Change Center. He estimates that the following costs will be incurred during the current year of operations:
Khaled Zaki is running a Fast Oil Change Center. He estimates that the following costs will be incurred during the current year of operations: Rent $12,000, Depreciation on equipment $14,000, Wages $29,600. He estimates that each oil change will require Motor oil $14 per change. Oil filters will cost $6.00 each. He must also pay The Fast Corporation a franchise fee of $2.40 per oil change, since he will operate the business as a franchise. In addition, utility costs are expected to behave in relation to the number of oil changes as follows: Number of Oil Changes 8,000 Utility Costs $ 10,800 12,000 $ 14,600 18,000 $ 19,200 24,000 32,000 $25,200 $30,000 Mr. Zaki anticipates that he can provide the oil change service with a filter at $40.00 each and sells 5000 oil change.
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