Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The owner of Genuine Subs, Inc., hopes to expand the present operation by adding one new outlet. She has studied three locations. Each would have

The owner of Genuine Subs, Inc., hopes to expand the present operation by adding one new outlet. She has studied three locations. Each would have the same labor and materials costs (food, serving containers, napkins, etc.) of $1.70 per sandwich. Sandwiches sell for $2.50 each in all locations. Rent and equipment costs would be $5,300 per month for location A, $5,650 per month for location B, and $5,900 per month for location C.

a. Determine the volume necessary at each location to realize a monthly profit of $9,500. (Do not round intermediate calculations. Round your answer to the nearest whole number.)

Location Monthly Volume
A
B
C


b-1. If expected sales at A, B, and C are 20,500 per month, 22,500 per month, and 23,500 per month, respectively, calculate the profit of the each locations? (Omit the "$" sign in your response.)

Location Monthly Profits
A $
B $
C $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To calculate the volume necessary at each location to realize a monthly profit of 9500 we can use th... 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

Step: 3

blur-text-image

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

Operations Management

Authors: William J Stevenson

12th edition

2900078024107, 78024102, 978-0078024108

More Books

Students also viewed these Finance questions

Question

Solve each equation using the quadratic formula. 2 3 1 + x = 3 4

Answered: 1 week ago