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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

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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 $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 55 70824 eTextbook and Media Assistance Used Solution Assistance Used The price of a detail is $225 ($468,000 + 2,080). In total, 520 (10 X 52) additional cars will be detailed. Thus, annual incremental revenue is $117,000 ($225 x 520). Attempts: 1 of 1 used (b) Calculate the incremental cost associated with being open on Saturday. Incremental cost 55 Save for Later Attempts: 0 of 1 used

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