The Interstate Hotel Is Considering Building a Car Wash at the Edge

question 280

Multiple Choice

The Interstate Hotel is considering building a car wash at the edge of their property. Fixed costs are estimated at $62,000 a year. The variable cost per unit is estimated at $1.75. The estimated price per car wash is $4.95. What is the cash break-even point of this project?

• A) 9,254 units
• B) 12,525 units
• C) 19,375 units
• D) 33,667 units
• E) 35,429 units

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Definitions:

Yards

A unit of length equal to 3 feet or 36 inches, used in both the imperial and US customary systems.

Inches

A unit of length in the United States customary and British imperial systems, equal to one-twelfth of a foot or exactly 2.54 centimeters.

Conversion Formula

A mathematical formula used to convert measurements from one unit to another.