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You operate a carwash with one machine. When you charge $113 per wash you expect to have ZELUUU customers per year. For ever lc reduction
You operate a carwash with one machine. When you charge $113 per wash you expect to have ZELUUU customers per year. For ever lc reduction in price you expect to add 251:} customers per year. Your xed cost is $1UU,DDD per year and your variable cost is negligible. Your carwash is open SUD days a year 10 hours per day. It takes about 5 minutes to wash a car. Assume Poisson arrival and exponential service time. You consider pricing your car wash between $3 and $10 in lc increments in order to maximize prot. Note that the arrival rate depends on the price you charge. 1. 1What price should you charge to maximize your prot disregarding customers1 waiting time in line? 2. Suppose you lose 2c per minute of waiting in line per customer in good will {rture business}. How much should you charge to maximize prot? 1What will be your prot? How many customers will you serve?I You must use data table for this question. Turn in all the computer sheets
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