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Two graduate business students are considering opening a full-service car wash in Lafayette, Louisiana, after graduation. A fully equipped facility can be leased at a
Two graduate business students are considering opening a full-service car wash in Lafayette, Louisiana, after graduation. A fully equipped facility can be leased at a cost of $40,000 for the year and an additional projected cost is $5 per automobile for materials and supplies. Full detail automobile cleaning would be priced at $15. Assume a zero opportunity cost.
a) What is the accounting total cost function for this business?
b) What is the breakeven number of units (car washes) for this operation?
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