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 $1.30 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 profits? Location B Location A Location C
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 $1.30 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 profits?
Location B
Location A
Location C
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
