The manager of a carwash must decide whether to have 1 or 2, Ask an Expert

Management Studies

the manager of a carwash must decide whether to have 1 or 2 wash lines. 1 line will mean a fixed cost of $6000/month and 2 lines will mean a fixed cost of $10,500/month. each line would be able to process 15 cars/hour. variable costs will be $3/car, and revenue will be $5.95/car. the manager projects an average demand of between 14 and 18 cars an hour. would you reccomend 1 or 2 lines? explain. also, the car wash is open 300 hours a month.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9351864

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