I have an excel file I can send in order to solve; but I am not sure how to complete this problem.
You operate a carwash with one machine. When you charge $10 per wash you expect tohave 20,000 customers per year. For every 10c reduction in price you expect to add 250customers per year. Your fixed cost is $100,000 per year and your variable cost isnegligible. Your carwash is open 300 days a year 10 hours per day. It takes about 5minutes to wash a car. Assume Poisson arrival and exponential service time. You considerpricing your car wash between $8 and $10 in 10c increments in order to maximize profit.Note that the arrival rate depends on the price you charge. 1. What price should you charge to maximize your profit disregarding customers’ waitingtime in line? 2. Suppose you lose 2c per minute of waiting in line per customer in good will (futurebusiness). How much should you charge to maximize profit? What will be your profit?How many customers will you serve? You must use data table for this question. 3. Find the best price by using Solver.