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- 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, servingcontainers, napkins, etc.) of $1.78 cents per sandwich. Sandwiches sell for $2.43 each in all locations.Rent and equipment costs would be $5,000 per month for location A, $6,500 per month forlocation B, and $5,800 per month for location C.a. Determine the volume necessary at each location to realize a monthly profit of $10,000.b. If expected sales at A, B, and C are 22,000 per month, 21,000 per month, and 20,000 per month,respectively, which location would yield the greatest profits?A small producer of machine tools wants to move to a larger building, and has identified two alternatives. Location A has annual fixed costs of $800,000 and variable costs of $14,000 per unit; location B has annual fixed costs of $920,000 and variable costs of $13,000 per unit. The finished items sell for $17,000 each.a. At what volume of output would the two locations have the same total cost?b. For what range of output would location A be superior? For what range would B be superior?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, servingcontainers, napkins, etc.) of $1.30 per sandwich. Sandwiches sell for $2.10 each in all locations.Rent and equipment costs would be $5,100 per month for location A, $5,550 per month for location B, and $5,800 per month for location C. a. Determine the volume necessary at each location to realize a monthly profit of $8,500. LOCATION Monthly volume A. ______________ B. _______________ C. _______________ b. If expected sales at A, B, and C are 19,500 per month, 21,500 per month, and 22,500 per month respectively, calculate the profit. Location Montly Profits A. ___________________ B. ____________________ C. ____________________ Which location would yield the greatest…
- 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 $1.76 per sandwich. Sandwiches sell for $8.00 each in all locations. Rent and equipment costs would be $5,000 per month for location A, $5,500 per month for location B, and $5,800 per month for location C. a. Determine the volume necessary at each location to realize a monthly profit of $10,000. (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 21,000 per month, 22,000 per month, and 23,000 per month, respectively, calculate ge profit of the each locations? (Do not round Intermediate calculations. Round your answer to the nearest whole number.) Location A Monthly Profits B C b-2. Which location would yield the greatest profits? e here to search R T J O…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 $1.76 per sandwich. Sandwiches sell for $8.00 each in all locations. Rent and equipment costs would be $5,000 per month for location A, $5,500 per month for location B, and $5,800 per month for location C. a. Determine the volume necessary at each location to realize a monthly profit of $10,000. (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 21,000 per month, 22,000 per month, and 23,000 per month, respectively, calculate the profit of the each locations? (Do not round intermediate calculations. Round your answer to the nearest whole number.) e to search Location Monthly Profits O J SA O ? 75°F Partly cloudy 8 O P T Y H J CVBNMU L alt ctri pauseAmazon had planned to open a second headquarters in Brooklyn that would have allegedly added 25,000 jobs to the region, increased property values, generated more business for local store owners, and generated additional sales and income tax revenue for the government. Some people were concerned, however, that increased home prices could lead to higher rent for people who rented apartments in Brooklyn. Which of the following statements are true? O Allowing Amazon to locate its second headquarters in Brooklyn is a Pareto improvement (i.e., makes one or more persons better off without making anyone worse off) even if some renters will have to pay higher rent. O Allowing Amazon to locate its second headquarters in Brooklyn would not be Kaldor-Hicks efficient if some renters will have to pay higher rent. O Allowing Amazon to locate its second headquarters in Brooklyn is a Kaldor-Hicks improvement if the gain in jobs and tax revenue more than offsets any losses experienced by renters. O…
- A producer of pottery is considering the addition of a new plant to absorb the backlog of demand that now exists. The primary location being considered will have fixed costs of $11,152 per month and variable costs of $1.23 per unit produced. Each item is sold to retailers at a price that averages $2.07 a) The volume per month is required in order to break even = Blank 1 (in whole number) b) The profit or loss would be realized on a monthly volume of 61,000 units Blank 2 c) The volume is needed to obtain a profit of $16,000 per month = Blank 3 (in whole number) d) The volume is needed to provide revenue of $23,000 per month = Blank 4 (in whole number)A producer of pottery is considering the addition of a new plant to absorb the backlog of demand that now exists. The primary location being considered will have fixed costs of $11,152 per month and variable costs of $1.23 per unit produced. Each item is sold to retailers at a price that averages $2.07 a) The volume per month is required in order to break even = ( ) (in whole number) b) The profit or loss would be realized on a monthly volume of 61,000 units = ( ) c) The volume is needed to obtain a profit of $16,000 per month = ( ) (in whole number) d) The volume is needed to provide revenue of $23,000 per month = ( ) (in whole number)Select two organizations, one in services and one in manu-facturing. What are the key factors that each organizationwould consider in locating a new facility? What data wouldyou want to collect before evaluating the location options,and how would you collect the data? Explain
- An operations manager wants to use factor rating method to decide the location of a new restaurant. Weights of the three factors specified, and the scores of two options are shown in the table below. Which option should the operations manager choose and what is the weighted score of this option? Factor Weight Option 1 Score Option 2 Score Proximity to the University 0.5 90 80 Rental Cost 0.3 80 100 Size 0.2 70 70 Option 2, weighted score = 84 Option 2, weighted score = 83 Option 1, weighted score = 83 There is no difference between the two options Option 1, weighted score = 84A small producer of machine tools wants to move to a larger building, and has identified two alternatives. Location A has annual fixed costs of $160,000 and variable costs of $15,000 per unit; location B has annual fixed costs of $360,000 and variable costs of $14,000 per unit. The finished items sell for $16,000 each. a. At what volume of output would the two locations have the same total cost? Volume of Output ____________unites b.1 For what range of output would location A be superior? (Enter your answer as a whole number. Do not include the indifference point in your answer.) Range of output 0 to ______________ b.2 For what range would B be superior? (Enter your answer as a whole number. Do not include the indifference point in your answer.) Range of output _________________or moreSam 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 Expected annual demand (sandwiches) Average variable costs per sandwich Average selling price per sandwich $12,000 30,000 $1.50 $3.25 $8,000 25,000 $1.00 $2.85