Scenario $1$

After receiving bad service at the local car wash, Ryan has decided to start VDB Detailing! One of his first

decisions when planning his business $-$ he needs to calculate the number of vehicles he will need to detail before

breaking even. His uncle has offered to let him use a small section of his shop for only $$300$ per month. Ryan is

going to pay his friend, Gabe, $$\frac{10}{?}$ hour to help him. He has estimated his additional expenses and other details

to be the following:

Insurance $$\frac{200}{?}$ month

His share of monthly utilities $$95$

Wax $($will yield $10$ cars$)$ $$19\mathrm{.}00$

Towels, soap, and other supplies $$3\mathrm{.}00/$vehicle

Leasing of equipment $$\frac{100}{?}$ month

Marketing $$\frac{105}{?}$ month budgeted

He estimates that it will take him $4\mathrm{.}5$ hours to detail a vehicle if he has help from his friend.

He plans to charge $$120$ per vehicle.

Question #$1-$ Make a list of your fixed costs, variable costs, and price. Calculate the number of vehicles Ryan

needs to detail each month in order to break even.

Scenario $2$

Ryan is now considering leaving his full$-$time job to grow his business but does not want to lose his salary.

Question #$2-$ If he decides to pay himself $$2000$ per month how many cars does he have to detail in a month

now to break even? Assume all other figures remain constant from scenario $1.$ Again, show your math.

Conclusion

Are these numbers attainable? Please explain. List two suggestions you could give Ryan that would affect his

break even point in a favorable manner, using the Break$-$Even Formula to justify them.

Responses copied from an internet source, out of the text, or from homework sites earn no credit, as they are a violation

of College Academic Integ

Scenario $1$

After receiving bad service at the local car wash, Ryan has decided to start VDB Detailing! One of his first

decisions when planning his business $-$ he needs to calculate the number of vehicles he will need to detail before

breaking even. His uncle has offered to let him use a small section of his shop for only $$300$ per month. Ryan is

going to pay his friend, Gabe, $$\frac{10}{?}$ hour to help him. He has estimated his additional expenses and other details

to be the following:

Insurance $$\frac{200}{?}$ month

His share of monthly utilities $$95$

Wax $($will yield $10$ cars$)$ $$19\mathrm{.}00$

Towels, soap, and other supplies $$\frac{3\mathrm{.}00}{?}$ vehicle

Leasing of equipment $$\frac{100}{?}$ month

Marketing $$\frac{105}{?}$ month budgeted

He estimates that it will take him $4\mathrm{.}5$ hours to detail a vehicle if he has help from his friend.

He plans to charge $$120$ per vehicle.

Question #$1-$ Make a list of your fixed costs, variable costs, and price. Calculate the number of vehicles Ryan

needs to detail each month in order to break even.

Scenario $2$

Ryan is now considering leaving his full$-$time job to grow his business but does not want to lose his salary.

Question #$2-$ If he decides to pay himself $$2000$ per month how many cars does he have to detail in a month

now to break even? Assume all other figures remain constant from scenario $1.$ Again, show your math.

Conclusion

Are these numbers attainable? Please explain. List two suggestions you could give Ryan that would affect his

break even point in a favorable manner, using the Break$-$Even Formula to justify them.