(Answered)-Quick Change and Fast Change are competing oil change businesses. - (2025 Updated Original AI-Free Solution

Question

1. Quick?Change?and?Fast?Change?are?competing?oil?change?businesses.?Both?companies?have?5,000?customers?and?currently?make?the?same?amount?of?profit.??The?price?of?an?oil?change?at?both?companies?is?$20.?Quick?Change?pays?its?employees?on?a?salary?basis,?and?its?salary?expense?is?$40,000.?Fast?Change?pays?it?employees?$8?per?customer?served.?Suppose?Quick?Change?is?able?to?lure?1,000?customers?from?Fast?Change?by?lowering?its?price?to?$18?per?vehicle.?Thus,?Quick?Change?will?have?6,000?customers?and?Fast?Change?will?have?only?4,000?customers.?Select?the?correct?statement?from?the?following.?
2. ???????????????????????????????????????????????Quick??????????????????????????Fast????????????????????????Rev??????????????????$100,0000???????????????????$100,000????????????????????????Cost?????????????????(??40,000)?????????????????????(??40,000)????????????????????????NI????????????????????$??60,000?????????????????????$??60,000?????????????????????????After?Change??????????????????????????Rev??????????????????$108,000?????????????????????$80,000????????????????????????Cost?????????????????(??40,000)?????????????????????(??32,000)????????????????????????NI????????????????????$??68,000?????????????????????$48,000??
   1. ????????????
   2. Quick?Change's?profit?will?remain?the?same?while?Fast?Change's?profit?will?fall.?????
   1. Fast Change?s profit will fall but it will still earn a higher profit than Quick Change.
   2. Profits will decline for both Quick Change and Fast Change.
   3. Quick Change?s profit will increase, and Fast Change?s profit will decrease.
   4. None of the above.