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Numbers of cars detailed 2,080 Revenue $468,000 Less operating expenses: Supplies (polish, wax, etc.) $5,824 Salaries of detailers 104,000 Water and other variable costs 12,480

Numbers of cars detailed

2,080

Revenue

$468,000

Less operating expenses:

Supplies (polish, wax, etc.)

$5,824

Salaries of detailers

104,000

Water and other variable costs

12,480

Supervisors salary

65,000

Rent

36,000

Depreciation

5,000

Other fixed costs

1,050

229,354

Income before taxes

$238,646

Quincy Davis, the owner of Sterling, is considering extending the workweek through Saturday. If he takes this action, hell hire a part-time employee for $300 per day to act as the Saturday manager so the supervisor still can have Saturday off. Quincy estimates that his company will detail an additional 10 cars per Saturday, 52 weeks per year.

Calculate the annual incremental revenue associated with being open on Saturday.

Annual incremental revenue

Calculate the incremental cost associated with being open on Saturday.

Incremental cost

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