Facilities in a restroom

• $100/month + upfront charge of $1,000 depreciated over their lifetime
• $1,000/(4 x 12) = $21 / month
• Total cost = 100 + 21 = ~$120/month

~$120/month which does not vary with the number of customers coming into the restaurant.

• <2,000 customers / month → $10 every other day → 10 x 15 = $150 / month
• >2,000 customers / month → $10 every day → 10 x 30 = $300 / month

Even with less than 2,000 customers per day, it will cost 150$ / day and this in itself is more costly than both the dryer and the towels option, and with more than 2,000 customers, it will only look more unfavorable.

Vary directly with #of customers in the restaurant, at a cost of $0.05 per customer. Therefore, with a low number of customers per month, paper towels will be cheaper than dryers will. How many customers would have to come to the restaurant each month to make the dryers more cost-effective? 

• The cost of towels would have to exceed $120 per month, equating to $120/$0.05 = 2,400 customers per month.