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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.

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