Question: Your only local competitor has approached you and made you an offer they want to retire and move to Florida. They have tried to

Your only local competitor has approached you and made you an offer – they want to retire and move to Florida. They have tried to sell their car wash, but the equipment is older and there are not any serious buyers. Their offer – if you pay them a flat fee of $35,000 per year for the next three years – they will exit the market. Based on having market share dominance, you project that your average customers per hour will increase from 2 to 4 (with the same service sales mix) without a reduction in price. Should you accept the deal? Why or why not?

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