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, plot break-even graph with break-even points and recommend best location for different range of demands for vehicle cleaning
Location
Pearland (A) Sugarland (B) Woodland © Katy (D)
Fixed Cost( $)
350,000 170,000 100,000 250,000
Variable Cost ($)
5 25 40 20