Problem 8-2The 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 $5,050 per month for location A, $5,570 per month for location B, and $5,740 per month for location C. a.Determine the volume necessary at each location to realize a monthly profit of $9,500. (Do not round intermediate calculations. Round your answer to the nearest whole number.) Location Monthly VolumeA B C b-1.If expected sales at A, B, and C are 20,800 per month, 22,100 per month, and 23,300 per month, respectively, calculate the profit of the each locations? (Omit the "$" sign in your response.) Location Monthly ProfitsA$ B$ C$ b-2.Which location would yield the greatest profits? Location ALocation BLocation C

Given Information: Cost of sandwich = $ 1.70 per unit Selling price of sandwich = $ 2.50 per unit…

Answered: The owner of Genuine Subs, Inc., hopes…

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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Problem 8-2

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 $5,050 per month for location A, $5,570 per month for location B, and $5,740 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 20,800 per month, 22,100 per month, and 23,300 per month, respectively, calculate the profit of the each locations? (Omit the "$" sign in your response.)

Location	Monthly Profits
A	$
B	$
C	$

b-2.	Which location would yield the greatest profits?

	Location A Location B Location C

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