Question

If a car wash operation has steady demand and 3

stations (vacuum, machine wash, and hand dry), what factors might
hinder the ability to increase profit?

Answer 1

Competition, costs, and maxed capacity can hinder a car wash operation's ability to increase profit.

Step-by-step explanation:

Several factors can hinder a car wash operation's ability to increase profit:

1. Competition: If other car wash operations open nearby and offer similar or better services, it can attract customers away from the original car wash.
2. Costs: Increasing expenses, such as rising utility costs, labor costs, or equipment maintenance expenses, can eat into profits.
3. Maxed Capacity: If the car wash is already operating at full capacity with the available stations, it may not be able to handle additional demand without significant investments in infrastructure and resources.