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? LOADING... Location Downtown Suburban Annual rent, including utilities $11,500 $8,250 Expected annual demand (sandwiches) 32,500 25,500 Average variable costs per sandwich $1.40 $1.20 Average selling price per sandwich $3.15 $2.75 Expected annual profits from the Downtown location are $nothing. (Enter your response as an integer.) Expected annual profits from the Suburban location are $nothing. (Enter your response as an integer.) Therefore, the location should be recommended.
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? LOADING... Location Downtown Suburban Annual rent, including utilities $11,500 $8,250 Expected annual demand (sandwiches) 32,500 25,500 Average variable costs per sandwich $1.40 $1.20 Average selling price per sandwich $3.15 $2.75 Expected annual profits from the Downtown location are $nothing. (Enter your response as an integer.) Expected annual profits from the Suburban location are $nothing. (Enter your response as an integer.) Therefore, the location should be recommended.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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?
LOADING...
|
Location
|
Downtown
|
Suburban
|
|
Annual rent, including utilities
|
$11,500
|
$8,250
|
|
Expected annual demand (sandwiches)
|
32,500
|
25,500
|
|
|
$1.40
|
$1.20
|
|
Average selling price per sandwich
|
$3.15
|
$2.75
|
Expected annual profits from the Downtown location are
$nothing.
(Enter your response as an integer.)Expected annual profits from the Suburban location are
$nothing.
(Enter your response as an integer.)Therefore, the location should be recommended.
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