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Problem 4 The owner of Genuine Subs, Inc. hopes to expand the present operation by adding a new outlet. She has studied four locations. Each
Problem 4 The owner of Genuine Subs, Inc. hopes to expand the present operation by adding a new outlet. She has studied four locations. Each would have the same labor and material costs (food, serving containers, napkins, etc.) of $6.15 per sandwich. Sandwiches sell for $10.95 each in all locations. Rent and equipment costs would be $8,000 per month for location A; $9,500 per month for location B; $8,700 per month for location C; and 9,200 per month for location D. a. Determine the volume necessary at each location to realize a monthly profit of $15,000. b. If expected sandwich sales at A, B, C, and Dare 20,000 per month, 18,000 per month, 20,400 per month, and 19,000 respectively, which locations would yield the greatest profit? Show your work
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