A chain restaurant wants to open a new location. It is considering three (3) potential sites forthe new restaurant. One location is downtown, the other location is in the suburbs and thefinal location is at the city limits. The downtown location will have monthly fixed costs of$9,500 and labor and materials at $3.75 an order. The suburb location will have a monthlyfixed cost of $8,200 and labor and materials at $3.00 an order. The city limits locations willhave a monthly fixed cost of $5,500 and labor and materials at $3.85 an order. The averageprice per order is $15.50A. The restaurant chain's business analyst is using three different demand levels for eachlocation 1,000 units, 800 units and 500 units. Determine the profitable of each potentiallocation using each of the demand levels.B. At what demand level is each potential location most profitable?C. At what demand level is each potential location least profitable?

Total Profit = Total Revenue - Total CostTotal Cost = Fixed cost + Variable costVariable cost =Labor…

Answered: A chain restaurant wants to open a new…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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