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Sterling Auto Detail is currently open Monday through Friday. In the past year, income before taxes was as follows: Numbers of cars detailed 2,080 Revenue

Sterling Auto Detail is currently open Monday through Friday. In the past year, income before taxes was as follows:

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

Supervisor's 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, he'll 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 $ 117,000.

Calculate the incremental cost associated with being open on Saturday.

Incremental cost $ 46,176

Ignoring taxes, what is the incremental profit?

Incremental profit $

Should Quincy open the business on Saturdays?

select an option

Yes or No. Quincy should or should not open the business on Saturdays.

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