A. You are thinking about opening an oil change shop. Your fixed costs will be $13,000 per month. You will charge customers $28 for a lube-oil filter. The cost of materials is in addition to your fixed costs and is estimated at $8 per customer. How many customers must you have each month in order to break even? Hint: "Break Even" means revenues equal expenses, so we could say "fixed costs+variable costs=revenues" B. If your shop is open an average of 25 days each month., how many customers do you need each day to break even? Answer for a: 650 customers Answer for b: 26 customers per day please help me set up the equation needed to solve and get the correct answer.
A. You are thinking about opening an oil change shop. Your fixed costs will be $13,000 per month. You will charge customers $28 for a lube-oil filter. The cost of materials is in addition to your fixed costs and is estimated at $8 per customer. How many customers must you have each month in order to break even? Hint: "Break Even" means revenues equal expenses, so we could say "fixed costs+variable costs=revenues" B. If your shop is open an average of 25 days each month., how many customers do you need each day to break even? Answer for a: 650 customers Answer for b: 26 customers per day please help me set up the equation needed to solve and get the correct answer.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A. You are thinking about opening an oil change shop. Your fixed costs will be $13,000 per month. You will charge customers $28 for a lube-oil filter. The cost of materials is in addition to your fixed costs and is estimated at $8 per customer. How many customers must you have each month in order to break even? Hint: "Break Even" means revenues equal expenses, so we could say "fixed costs+variable costs=revenues"
B. If your shop is open an average of 25 days each month., how many customers do you need each day to break even?
Answer for a: 650 customers
Answer for b: 26 customers per day
please help me set up the equation needed to solve and get the correct answer.
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