Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sam Hutchins is planning to operate a specialty bagel sandwich kiosk but is undecided about whether to locate in the downtown shopping plaza or in

Sam Hutchins is planning to operate a specialty bagel sandwich kiosk but is undecided about whether to locate in the downtown shopping plaza or in a suburban shopping mall. Based on the following data, which location would you recommend?

Location

Downtown

Suburban

Annual rent, including utilities

$10,500

$6,750

Expected annual demand (sandwiches)

42,500

26,000

Average variable costs per sandwich

$1.40

$1.25

Average selling price per sandwich

$3.35

$2.80

Expected annual profits from the Downtown location are $_______(Enter your response as an integer.)

Expected annual profits from the Suburban location are $_____ (Enter your response as an integer.)

Therefore, the ______location should be recommended.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Anti Audit Warfare

Authors: Business Management Daily

7th Edition

1540747182, 978-1540747181

More Books

Students also viewed these Accounting questions

Question

2. List the advantages of listening well

Answered: 1 week ago