Shiny Gator Car Wash cannot meet demand with its current set of automatic car wash machines. Shiny Gator is considering 2 new car wash machines to help meet demand.
Machine A which can wash only and Machine B which can wash and hot wax. Machine A costs $30,000 and Machine B costs $60,000.
The company estimates its cost per car wash (which includes water, soap, chemicals etc.) for Machine A will be $8 and Machine B will be $7.
The revenue per wash for A will be $12, B will be $13 (hot wax brings in more revenue).