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Operations Management
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 $2.70 per sandwich. Sandwiches sell for $3.50 each in all locations. Rent and equipment costs would be $5,800 per month for location A, $5,900 per month for location B, and $6,150 per month for location C. a. Determine the volume necessary at each location to realize a monthly profit of $12,000. (Do not round intermediate calculations. Round your answer to the nearest whole number.) Location Monthly Volume B b-1. If expected sales at A, B, and C are 23,000 per month, 26,000 per month, and 25,000 per month, respectively, calculate the profit of the each locations? (Omit the "$" sign in your response.) Monthly Profits $ Location A B $ C b-2. Which location would yield the greatest profits? O Location A O Location C Location B

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 $2.70 per sandwich. Sandwiches sell for $3.50 each in all locations. Rent and equipment costs would be $5,800 per month for location A, $5,900 per month for location B, and $6,150 per month for location C. a. Determine the volume necessary at each location to realize a monthly profit of $12,000. (Do not round intermediate calculations. Round your answer to the nearest whole number.) Location Monthly Volume B b-1. If expected sales at A, B, and C are 23,000 per month, 26,000 per month, and 25,000 per month, respectively, calculate the profit of the each locations? (Omit the "$" sign in your response.) Monthly Profits $ Location A B $ C b-2. Which location would yield the greatest profits? O Location A O Location C Location B

Practical Management Science
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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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 $2.70 per sandwich. Sandwiches sell for $3.50 each in all locations. Rent and equipment costs would be $5,800 per month for location A, $5,900 per month for location B, and $6,150 per month for location C. a. Determine the volume necessary at each location to realize a monthly profit of $12,000. (Do not round intermediate calculations. Round your answer to the nearest whole number.) Location Monthly Volume B b-1. If expected sales at A, B, and C are 23,000 per month, 26,000 per month, and 25,000 per month, respectively, calculate the profit of the each locations? (Omit the "$" sign in your response.) Monthly Profits $ Location A B $ C b-2. Which location would yield the greatest profits? O Location A O Location C Location B
Transcribed Image Text: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 $2.70 per sandwich. Sandwiches sell for $3.50 each in all locations. Rent and equipment costs would be $5,800 per month for location A, $5,900 per month for location B, and $6,150 per month for location C. a. Determine the volume necessary at each location to realize a monthly profit of $12,000. (Do not round intermediate calculations. Round your answer to the nearest whole number.) Location Monthly Volume B b-1. If expected sales at A, B, and C are 23,000 per month, 26,000 per month, and 25,000 per month, respectively, calculate the profit of the each locations? (Omit the "$" sign in your response.) Monthly Profits $ Location A B $ C b-2. Which location would yield the greatest profits? O Location A O Location C Location B
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