Question
Your family recently began operating a car wash at a beach resort.There are many other car washes at this beach resort.You have observed that the
Your family recently began operating a car wash at a beach resort.There are many other car washes at this beach resort.You have observed that the customers care only about finding the cheapest price for car washes; they do not care which company they use.Your family purchased the equipment and the building for the car wash.They were able to spend $1,000 of their savings to go towards this purchase.To cover the rest of this expense, they took out a small business loan.The cost of the loan comes to $15 per day for the next 3 years.The business must hire labor and purchase cleaning solutions, car wax, etc. to operate the car wash.After some research you have figured out that the cost for labor and supplies is as follows:
Number of car washes sold per dayTotal cost for labor and supplies
1$10.67
2$12.67
3$16.00
4$20.67
5$26.67
6$34.00
7$42.67
8$52.67
9$64.00
10$76.67
11$90.67
12$106.00
13$122.67
14$140.67
15$160.00
16$180.67
17$202.67
18$226.00
19$250.67
20$276.67.
When the beach resort is in-season, you have observed that you can charge a price of $14.00 per car wash. Right now the resort is in-season.Currently you are selling 17 car washes per day.Your family wants your advice.
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