1. The As-You-Like-It Hamburger Shop is considering adding a new location. The investment at each of the four potential sites is the same. The price they can charge for hamburgers is set by the competition in the area.

Given the information below, which site is expected to be the most profitable?

Factor	Site A	Site B	Site C	Site D
Fixed Cost	$10,000	$8,000	$6,000	$11,000
Variable Cost per Unit	$ 0.70	$ 0.70	$ 0.85	$ 0.65
Price per Unit	$ 1.30	$ 1.20	$ 1.25	$ 1.10
Forecast Volume (Units)	20,000	22,000	18,000	24,000

Site C has the highest price per unit ($1.30) and the lowest fixed cost ($6,000). This implies that a larger profit is generated for each unit sold. Additionally, Site C is anticipated to sell the most units (24,000), which indicates that more units will be sold and more total profits would ensue. Site C is therefore anticipated to be the most profitable.

1. Given the retail location coordinates and the value of material movement in the following chart, find the best supply point location using the center-of-gravity method.

Retail Outlet	Location Coordinates X, Y	Material Movement
1	25, 05	1,500
2	17, 20	3,000
3	12, 12	1,000
4	06, 09	2,200

The best supply point location using the center-of-gravity method can be calculated by finding the average of all the x-coordinates and the average of all the y-coordinates.

Average X-Coordinate = (25+17+12+6)/4 = 15.5 Average Y-Coordinate = (5+20+12+9)/4 = 12.25

Therefore, the best supply point location using the center-of-gravity method is (15.5, 12.25).

The center-of-gravity method is a technique used to calculate the best supply point location by taking the average of all the x-coordinates and the average of all the y-coordinates. This results in the coordinates of the point that is closest to the center of the points plotted on a graph. In this case, the average of all the x-coordinates is 15.5 and the average of all the y-coordinates is 12.25, making the best supply point location (15.5, 12.25).

Tell me why my answers are wrong comparing with below:

The As-You-Like-It Hamburger Shop is considering adding a new location. The investment at each of the

four potential sites is the same. The price they can charge for hamburgers is set by the competition in the

area.

Given the information below, which site is expected to be the most profitable?

Factor Site A Site B Site C Site D

Fixed Cost $10,000 $8,000 $6,000 $11,000

Variable Cost per Unit $ 0.70 $ 0.70 $ 0.85 $ 0.65

Price per Unit $ 1.30 $ 1.20 $ 1.25 $ 1.10

Forecast Volume (Units) 20,000 22,000 18,000 24,000

ANSWER:

Compute the net profit for each site:

10,000 = $2000

8,000 = $3000

6,000 = $1200

11,000 = -$200

The best site is B.

2. Given the retail location coordinates and the value of material movement in the following chart, find the

best supply point location using the center-of-gravity method.

Retail Outlet Location Coordinates X, Y Material Movement

1 25, 05 1,500

2 17, 20 3,000

3 12, 12 1,000

4 06, 09 2,200

ANSWER:

Cx = XiWi/Wi = 14.77

Cy = YiWi/Wi = 12.90

Best supply point location has X, Y coordinates 14.77, 12.90