Car Wash Intl. is considering four possible sites for its new operation in Houston area.
In the past three years, they had witnessed growth in demand for car washes from 2 thousand vehicles a year, to 6 thousand.
With a purchase of new automated machine, they expect to wash 10,000 vehicles.
Based on the information provided below, use break even analysis (15 points), plot break-even graph with breakeven points (15 points), and recommend best location for different range of demands for vehicle cleaning (5 points).
Location Fixed Cost( $) Variable Cost ($) Pearland (A) 350,000 5 Sugarland (B) 170,000 25 Woodland © 100,000 40 Katy (D) 250,000 20