An automated car wash called Jet Express outside a large Texas city on the beltway is deciding whether to build and install one dedicated vehicle wash line or have two parallel wash lines. There are no other car washes at this intersection and there will be none because all the land is developed. The second line allows for some economies of scale in total cost. The monthly fixed cost of one wash line is $13,500 per month or $162,000 per year. This includes the mortgage payment, taxes on the building, and wash equipment. The variable cost for this single line is $15 per vehicle. The fixed cost for two wash lines is $26,000 per month or $312,000 per year, and the variable cost to operate two lines is $12 per vehicle because some wash crews can work both lines. The price of the average interior and exterior car wash is $27. Use the Excel template Break-Even in MindTap to answer the following questions: What is the break-even quantity for one and two automated wash line? Round your answers to the nearest whole number. For one wash line: vehicles per year For two wash lines: vehicles per year Annual forecasts of demand for this site ranges from 13,500 to 27,000 per year. Calculate the net profit/loss of the site in each of the following situations. Round your answers to the nearest dollar. If your answer is zero, enter "0". Use a minus sign to enter loss, if any. One Two wash line wash lines 13,500 vehicles $ $ 20,250 vehicles $ $ 27,000 vehicles $ $
An automated car wash called Jet Express outside a large Texas city on the beltway is deciding whether to build and install one dedicated vehicle wash line or have two parallel wash lines. There are no other car washes at this intersection and there will be none because all the land is developed. The second line allows for some economies of scale in total cost. The monthly fixed cost of one wash line is $13,500 per month or $162,000 per year. This includes the mortgage payment, taxes on the building, and wash equipment. The variable cost for this single line is $15 per vehicle. The fixed cost for two wash lines is $26,000 per month or $312,000 per year, and the variable cost to operate two lines is $12 per vehicle because some wash crews can work both lines. The price of the average interior and exterior car wash is $27. Use the Excel template Break-Even in MindTap to answer the following questions:
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What is the break-even quantity for one and two automated wash line? Round your answers to the nearest whole number.
For one wash line: vehicles per year For two wash lines: vehicles per year -
Annual
forecasts of demand for this site ranges from 13,500 to 27,000 per year. Calculate the netprofit/loss of the site in each of the following situations. Round your answers to the nearest dollar. If your answer is zero, enter "0". Use a minus sign to enter loss, if any.One Two wash line wash lines 13,500 vehicles $ $ 20,250 vehicles $ $ 27,000 vehicles $ $
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