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3 - 3 6 Even though independent gasoline stations have been having a difficult time, Susan Solomon has been thinking about starting her own independent

3-36 Even though independent gasoline stations have been having a difficult time, Susan Solomon has been thinking about starting her own independent gasoline station. Susan's problem is to decide how large her station should be. The annual returns will depend on both the size of her station and a number of marketing factors related to the oil industry and demand for gasoline. After a careful analysis, Susan developed the following table GOOD FAIR MARKET MARKET MARKET POOR SIZE FIRST STATION -10,00020,000100,00030,00040,000160,00050,00020,000 Small Medium Large Very large go300,00025,00080,00030,000

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