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