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

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