The monthly volume at each location. Introduction: Location is where a firm chooses to site its operations. Location decisions can large effects on expenses and incomes. Location choices are normally quite imperative to both substantial and private companies. The area choice directly affects an operation's expenses and also its capacity to serve clients.

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Answer 1

Question

Chapter 8, Problem 2P

a)

Summary Introduction

To determine: The monthly volume at each location.

Introduction: Location is where a firm chooses to site its operations. Location decisions can large effects on expenses and incomes. Location choices are normally quite imperative to both substantial and private companies. The area choice directly affects an operation's expenses and also its capacity to serve clients.

a)

Expert Solution

Answer to Problem 2P

The monthly volume of location A is 16,853.93 units, location B is 17,415.73 units and location C is 17,752.81 units.

Explanation of Solution

Given Information:

It is given that the labor and material costs are $1.76 per sandwich, the cost of sandwich is $2.65. The rent and equipment cost for Location A is$5,000, Location B is $5,500 and Location C is $5,800. The realized monthly profit is $10,000

Calculate the monthly volume at each location

It is calculated by adding realized profit with fixed costs and dividing the result with rate per unit subtracted by variable costs.

Monthly Volume(Q)LocationA=[(Realized Profit+Fixed Costs)(Rate per unit−Variable Costs)]=[($10,000+$5,000)($2.65−$1.76)]=[$15,000$0.89]=16,853.93 units

Monthly Volume(Q)LocationB=[(Realized Profit+Fixed Costs)(Rate per unit−Variable Costs)]=[($10,000+$5,500)($2.65−$1.76)]=[$15,500$0.89]=17,415.73 units

Monthly Volume(Q)LocationC=[(Realized Profit+Fixed Costs)(Rate per unit−Variable Costs)]=[($10,000+$5,800)($2.65−$1.76)]=[$15,800$0.89]=17,752.81 units

Hence, the monthly volume of location A is 16,853.93 units, location B is 17,415.73 units and location C is 17,752.81 units.

b)

Summary Introduction

To determine: The location that yield with greatest profits.

Introduction: Location is where a firm chooses to site its operations. Location decisions can large effects on expenses and incomes. Location choices are normally quite imperative to both substantial and private companies. The area choice directly affects an operation's expenses and also its capacity to serve clients.

b)

Expert Solution

Answer to Problem 2P

“Location C” yields greatest profits.

Explanation of Solution

Given Information:

It is given that the labor and material costs are $1.76 per sandwich, the cost of sandwich is $2.65. The rent and equipment cost for Location A is $5,000, Location B is $5,500 and Location C is $5,800. The expected sales for Location A are $21,000, Location B is $22,000 and Location C is $23,000.

Calculate the location that yield with greatest profits.

It is calculated by subtracting the rate per unit with variable costs and multiplying the result with expected sales and subtracting the whole with the fixed costs.

Expected ProfitLocation A=[(Expected Sales×(Rate per unit−Variable Cost))−Fixed Costs]=[($21,000×($2.65−$1.76))−$5,000]=[($21,000×$0.89)−$5,000]=[$18,690−$5,000]

=$13,690

Expected ProfitLocation B=[(Expected Sales×(Rate per unit−Variable Cost))−Fixed Costs]=[($22,000×($2.65−$1.76))−$5,500]=[($22,000×$0.89)−$5,500]=[$19,580−$5,500]

=$14,080

Expected ProfitLocation C=[(Expected Sales×(Rate per unit−Variable Cost))−Fixed Costs]=[($23,000×($2.65−$1.76))−$5,800]=[($23,000×$0.89)−$5,800]=[$20,470−$5,800]

=$14,670

Hence, location C yields greatest profits.

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Students have asked these similar questions

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 pause

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, 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…

Answer 2

Question

Chapter 8, Problem 2P

a)

Summary Introduction

To determine: The monthly volume at each location.

Introduction: Location is where a firm chooses to site its operations. Location decisions can large effects on expenses and incomes. Location choices are normally quite imperative to both substantial and private companies. The area choice directly affects an operation's expenses and also its capacity to serve clients.

a)

Expert Solution

Answer to Problem 2P

The monthly volume of location A is 16,853.93 units, location B is 17,415.73 units and location C is 17,752.81 units.

Explanation of Solution

Given Information:

It is given that the labor and material costs are $1.76 per sandwich, the cost of sandwich is $2.65. The rent and equipment cost for Location A is$5,000, Location B is $5,500 and Location C is $5,800. The realized monthly profit is $10,000

Calculate the monthly volume at each location

It is calculated by adding realized profit with fixed costs and dividing the result with rate per unit subtracted by variable costs.

Monthly Volume(Q)LocationA=[(Realized Profit+Fixed Costs)(Rate per unit−Variable Costs)]=[($10,000+$5,000)($2.65−$1.76)]=[$15,000$0.89]=16,853.93 units

Monthly Volume(Q)LocationB=[(Realized Profit+Fixed Costs)(Rate per unit−Variable Costs)]=[($10,000+$5,500)($2.65−$1.76)]=[$15,500$0.89]=17,415.73 units

Monthly Volume(Q)LocationC=[(Realized Profit+Fixed Costs)(Rate per unit−Variable Costs)]=[($10,000+$5,800)($2.65−$1.76)]=[$15,800$0.89]=17,752.81 units

Hence, the monthly volume of location A is 16,853.93 units, location B is 17,415.73 units and location C is 17,752.81 units.

b)

Summary Introduction

To determine: The location that yield with greatest profits.

Introduction: Location is where a firm chooses to site its operations. Location decisions can large effects on expenses and incomes. Location choices are normally quite imperative to both substantial and private companies. The area choice directly affects an operation's expenses and also its capacity to serve clients.

b)

Expert Solution

Answer to Problem 2P

“Location C” yields greatest profits.

Explanation of Solution

Given Information:

It is given that the labor and material costs are $1.76 per sandwich, the cost of sandwich is $2.65. The rent and equipment cost for Location A is $5,000, Location B is $5,500 and Location C is $5,800. The expected sales for Location A are $21,000, Location B is $22,000 and Location C is $23,000.

Calculate the location that yield with greatest profits.

It is calculated by subtracting the rate per unit with variable costs and multiplying the result with expected sales and subtracting the whole with the fixed costs.

Expected ProfitLocation A=[(Expected Sales×(Rate per unit−Variable Cost))−Fixed Costs]=[($21,000×($2.65−$1.76))−$5,000]=[($21,000×$0.89)−$5,000]=[$18,690−$5,000]

=$13,690

Expected ProfitLocation B=[(Expected Sales×(Rate per unit−Variable Cost))−Fixed Costs]=[($22,000×($2.65−$1.76))−$5,500]=[($22,000×$0.89)−$5,500]=[$19,580−$5,500]

=$14,080

Expected ProfitLocation C=[(Expected Sales×(Rate per unit−Variable Cost))−Fixed Costs]=[($23,000×($2.65−$1.76))−$5,800]=[($23,000×$0.89)−$5,800]=[$20,470−$5,800]

=$14,670

Hence, location C yields greatest profits.

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Answer 3

Question

Chapter 8, Problem 2P

a)

Summary Introduction

To determine: The monthly volume at each location.

Introduction: Location is where a firm chooses to site its operations. Location decisions can large effects on expenses and incomes. Location choices are normally quite imperative to both substantial and private companies. The area choice directly affects an operation's expenses and also its capacity to serve clients.

a)

Expert Solution

Answer to Problem 2P

The monthly volume of location A is 16,853.93 units, location B is 17,415.73 units and location C is 17,752.81 units.

Explanation of Solution

Given Information:

It is given that the labor and material costs are $1.76 per sandwich, the cost of sandwich is $2.65. The rent and equipment cost for Location A is$5,000, Location B is $5,500 and Location C is $5,800. The realized monthly profit is $10,000

Calculate the monthly volume at each location

It is calculated by adding realized profit with fixed costs and dividing the result with rate per unit subtracted by variable costs.

Monthly Volume(Q)LocationA=[(Realized Profit+Fixed Costs)(Rate per unit−Variable Costs)]=[($10,000+$5,000)($2.65−$1.76)]=[$15,000$0.89]=16,853.93 units

Monthly Volume(Q)LocationB=[(Realized Profit+Fixed Costs)(Rate per unit−Variable Costs)]=[($10,000+$5,500)($2.65−$1.76)]=[$15,500$0.89]=17,415.73 units

Monthly Volume(Q)LocationC=[(Realized Profit+Fixed Costs)(Rate per unit−Variable Costs)]=[($10,000+$5,800)($2.65−$1.76)]=[$15,800$0.89]=17,752.81 units

Hence, the monthly volume of location A is 16,853.93 units, location B is 17,415.73 units and location C is 17,752.81 units.

b)

Summary Introduction

To determine: The location that yield with greatest profits.

Introduction: Location is where a firm chooses to site its operations. Location decisions can large effects on expenses and incomes. Location choices are normally quite imperative to both substantial and private companies. The area choice directly affects an operation's expenses and also its capacity to serve clients.

b)

Expert Solution

Answer to Problem 2P

“Location C” yields greatest profits.

Explanation of Solution

Given Information:

It is given that the labor and material costs are $1.76 per sandwich, the cost of sandwich is $2.65. The rent and equipment cost for Location A is $5,000, Location B is $5,500 and Location C is $5,800. The expected sales for Location A are $21,000, Location B is $22,000 and Location C is $23,000.

Calculate the location that yield with greatest profits.

It is calculated by subtracting the rate per unit with variable costs and multiplying the result with expected sales and subtracting the whole with the fixed costs.

Expected ProfitLocation A=[(Expected Sales×(Rate per unit−Variable Cost))−Fixed Costs]=[($21,000×($2.65−$1.76))−$5,000]=[($21,000×$0.89)−$5,000]=[$18,690−$5,000]

=$13,690

Expected ProfitLocation B=[(Expected Sales×(Rate per unit−Variable Cost))−Fixed Costs]=[($22,000×($2.65−$1.76))−$5,500]=[($22,000×$0.89)−$5,500]=[$19,580−$5,500]

=$14,080

Expected ProfitLocation C=[(Expected Sales×(Rate per unit−Variable Cost))−Fixed Costs]=[($23,000×($2.65−$1.76))−$5,800]=[($23,000×$0.89)−$5,800]=[$20,470−$5,800]

=$14,670

Hence, location C yields greatest profits.

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Answer 4

Question

Chapter 8, Problem 2P

a)

Summary Introduction

To determine: The monthly volume at each location.

Introduction: Location is where a firm chooses to site its operations. Location decisions can large effects on expenses and incomes. Location choices are normally quite imperative to both substantial and private companies. The area choice directly affects an operation's expenses and also its capacity to serve clients.

a)

Expert Solution

Answer to Problem 2P

The monthly volume of location A is 16,853.93 units, location B is 17,415.73 units and location C is 17,752.81 units.

Explanation of Solution

Given Information:

It is given that the labor and material costs are $1.76 per sandwich, the cost of sandwich is $2.65. The rent and equipment cost for Location A is$5,000, Location B is $5,500 and Location C is $5,800. The realized monthly profit is $10,000

Calculate the monthly volume at each location

It is calculated by adding realized profit with fixed costs and dividing the result with rate per unit subtracted by variable costs.

Monthly Volume(Q)LocationA=[(Realized Profit+Fixed Costs)(Rate per unit−Variable Costs)]=[($10,000+$5,000)($2.65−$1.76)]=[$15,000$0.89]=16,853.93 units

Monthly Volume(Q)LocationB=[(Realized Profit+Fixed Costs)(Rate per unit−Variable Costs)]=[($10,000+$5,500)($2.65−$1.76)]=[$15,500$0.89]=17,415.73 units

Monthly Volume(Q)LocationC=[(Realized Profit+Fixed Costs)(Rate per unit−Variable Costs)]=[($10,000+$5,800)($2.65−$1.76)]=[$15,800$0.89]=17,752.81 units

Hence, the monthly volume of location A is 16,853.93 units, location B is 17,415.73 units and location C is 17,752.81 units.

b)

Summary Introduction

To determine: The location that yield with greatest profits.

Introduction: Location is where a firm chooses to site its operations. Location decisions can large effects on expenses and incomes. Location choices are normally quite imperative to both substantial and private companies. The area choice directly affects an operation's expenses and also its capacity to serve clients.

b)

Expert Solution

Answer to Problem 2P

“Location C” yields greatest profits.

Explanation of Solution

Given Information:

It is given that the labor and material costs are $1.76 per sandwich, the cost of sandwich is $2.65. The rent and equipment cost for Location A is $5,000, Location B is $5,500 and Location C is $5,800. The expected sales for Location A are $21,000, Location B is $22,000 and Location C is $23,000.

Calculate the location that yield with greatest profits.

It is calculated by subtracting the rate per unit with variable costs and multiplying the result with expected sales and subtracting the whole with the fixed costs.

Expected ProfitLocation A=[(Expected Sales×(Rate per unit−Variable Cost))−Fixed Costs]=[($21,000×($2.65−$1.76))−$5,000]=[($21,000×$0.89)−$5,000]=[$18,690−$5,000]

=$13,690

Expected ProfitLocation B=[(Expected Sales×(Rate per unit−Variable Cost))−Fixed Costs]=[($22,000×($2.65−$1.76))−$5,500]=[($22,000×$0.89)−$5,500]=[$19,580−$5,500]

=$14,080

Expected ProfitLocation C=[(Expected Sales×(Rate per unit−Variable Cost))−Fixed Costs]=[($23,000×($2.65−$1.76))−$5,800]=[($23,000×$0.89)−$5,800]=[$20,470−$5,800]

=$14,670

Hence, location C yields greatest profits.

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Answer 5

Chapter 8, Problem 2P

a)

Summary Introduction

To determine: The monthly volume at each location.

Introduction: Location is where a firm chooses to site its operations. Location decisions can large effects on expenses and incomes. Location choices are normally quite imperative to both substantial and private companies. The area choice directly affects an operation's expenses and also its capacity to serve clients.

a)

Expert Solution

Answer to Problem 2P

The monthly volume of location A is 16,853.93 units, location B is 17,415.73 units and location C is 17,752.81 units.

Explanation of Solution

Given Information:

It is given that the labor and material costs are $1.76 per sandwich, the cost of sandwich is $2.65. The rent and equipment cost for Location A is$5,000, Location B is $5,500 and Location C is $5,800. The realized monthly profit is $10,000

Calculate the monthly volume at each location

It is calculated by adding realized profit with fixed costs and dividing the result with rate per unit subtracted by variable costs.

Monthly Volume(Q)LocationA=[(Realized Profit+Fixed Costs)(Rate per unit−Variable Costs)]=[($10,000+$5,000)($2.65−$1.76)]=[$15,000$0.89]=16,853.93 units

Monthly Volume(Q)LocationB=[(Realized Profit+Fixed Costs)(Rate per unit−Variable Costs)]=[($10,000+$5,500)($2.65−$1.76)]=[$15,500$0.89]=17,415.73 units

Monthly Volume(Q)LocationC=[(Realized Profit+Fixed Costs)(Rate per unit−Variable Costs)]=[($10,000+$5,800)($2.65−$1.76)]=[$15,800$0.89]=17,752.81 units

Hence, the monthly volume of location A is 16,853.93 units, location B is 17,415.73 units and location C is 17,752.81 units.

b)

Summary Introduction

To determine: The location that yield with greatest profits.

Introduction: Location is where a firm chooses to site its operations. Location decisions can large effects on expenses and incomes. Location choices are normally quite imperative to both substantial and private companies. The area choice directly affects an operation's expenses and also its capacity to serve clients.

b)

Expert Solution

Answer to Problem 2P

“Location C” yields greatest profits.

Explanation of Solution

Given Information:

It is given that the labor and material costs are $1.76 per sandwich, the cost of sandwich is $2.65. The rent and equipment cost for Location A is $5,000, Location B is $5,500 and Location C is $5,800. The expected sales for Location A are $21,000, Location B is $22,000 and Location C is $23,000.

Calculate the location that yield with greatest profits.

It is calculated by subtracting the rate per unit with variable costs and multiplying the result with expected sales and subtracting the whole with the fixed costs.

Expected ProfitLocation A=[(Expected Sales×(Rate per unit−Variable Cost))−Fixed Costs]=[($21,000×($2.65−$1.76))−$5,000]=[($21,000×$0.89)−$5,000]=[$18,690−$5,000]

=$13,690

Expected ProfitLocation B=[(Expected Sales×(Rate per unit−Variable Cost))−Fixed Costs]=[($22,000×($2.65−$1.76))−$5,500]=[($22,000×$0.89)−$5,500]=[$19,580−$5,500]

=$14,080

Expected ProfitLocation C=[(Expected Sales×(Rate per unit−Variable Cost))−Fixed Costs]=[($23,000×($2.65−$1.76))−$5,800]=[($23,000×$0.89)−$5,800]=[$20,470−$5,800]

=$14,670

Hence, location C yields greatest profits.

Answer 6

Chapter 8, Problem 2P

a)

Summary Introduction

To determine: The monthly volume at each location.

Introduction: Location is where a firm chooses to site its operations. Location decisions can large effects on expenses and incomes. Location choices are normally quite imperative to both substantial and private companies. The area choice directly affects an operation's expenses and also its capacity to serve clients.

a)

Expert Solution

Answer to Problem 2P

The monthly volume of location A is 16,853.93 units, location B is 17,415.73 units and location C is 17,752.81 units.

Explanation of Solution

Given Information:

It is given that the labor and material costs are $1.76 per sandwich, the cost of sandwich is $2.65. The rent and equipment cost for Location A is$5,000, Location B is $5,500 and Location C is $5,800. The realized monthly profit is $10,000

Calculate the monthly volume at each location

It is calculated by adding realized profit with fixed costs and dividing the result with rate per unit subtracted by variable costs.

Monthly Volume(Q)LocationA=[(Realized Profit+Fixed Costs)(Rate per unit−Variable Costs)]=[($10,000+$5,000)($2.65−$1.76)]=[$15,000$0.89]=16,853.93 units

Monthly Volume(Q)LocationB=[(Realized Profit+Fixed Costs)(Rate per unit−Variable Costs)]=[($10,000+$5,500)($2.65−$1.76)]=[$15,500$0.89]=17,415.73 units

Monthly Volume(Q)LocationC=[(Realized Profit+Fixed Costs)(Rate per unit−Variable Costs)]=[($10,000+$5,800)($2.65−$1.76)]=[$15,800$0.89]=17,752.81 units

Hence, the monthly volume of location A is 16,853.93 units, location B is 17,415.73 units and location C is 17,752.81 units.

Answer 7

Chapter 8, Problem 2P

a)

Summary Introduction

To determine: The monthly volume at each location.

Introduction: Location is where a firm chooses to site its operations. Location decisions can large effects on expenses and incomes. Location choices are normally quite imperative to both substantial and private companies. The area choice directly affects an operation's expenses and also its capacity to serve clients.

Answer 8

a)

Expert Solution

Answer to Problem 2P

The monthly volume of location A is 16,853.93 units, location B is 17,415.73 units and location C is 17,752.81 units.

Answer 9

a)

Expert Solution

Answer 10

a)

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Given Information:

It is given that the labor and material costs are $1.76 per sandwich, the cost of sandwich is $2.65. The rent and equipment cost for Location A is$5,000, Location B is $5,500 and Location C is $5,800. The realized monthly profit is $10,000

Calculate the monthly volume at each location

It is calculated by adding realized profit with fixed costs and dividing the result with rate per unit subtracted by variable costs.

Monthly Volume(Q)LocationA=[(Realized Profit+Fixed Costs)(Rate per unit−Variable Costs)]=[($10,000+$5,000)($2.65−$1.76)]=[$15,000$0.89]=16,853.93 units

Monthly Volume(Q)LocationB=[(Realized Profit+Fixed Costs)(Rate per unit−Variable Costs)]=[($10,000+$5,500)($2.65−$1.76)]=[$15,500$0.89]=17,415.73 units

Monthly Volume(Q)LocationC=[(Realized Profit+Fixed Costs)(Rate per unit−Variable Costs)]=[($10,000+$5,800)($2.65−$1.76)]=[$15,800$0.89]=17,752.81 units

Hence, the monthly volume of location A is 16,853.93 units, location B is 17,415.73 units and location C is 17,752.81 units.

Answer 13

b)

Summary Introduction

To determine: The location that yield with greatest profits.

Introduction: Location is where a firm chooses to site its operations. Location decisions can large effects on expenses and incomes. Location choices are normally quite imperative to both substantial and private companies. The area choice directly affects an operation's expenses and also its capacity to serve clients.

b)

Expert Solution

Answer to Problem 2P

“Location C” yields greatest profits.

Explanation of Solution

Given Information:

It is given that the labor and material costs are $1.76 per sandwich, the cost of sandwich is $2.65. The rent and equipment cost for Location A is $5,000, Location B is $5,500 and Location C is $5,800. The expected sales for Location A are $21,000, Location B is $22,000 and Location C is $23,000.

Calculate the location that yield with greatest profits.

It is calculated by subtracting the rate per unit with variable costs and multiplying the result with expected sales and subtracting the whole with the fixed costs.

Expected ProfitLocation A=[(Expected Sales×(Rate per unit−Variable Cost))−Fixed Costs]=[($21,000×($2.65−$1.76))−$5,000]=[($21,000×$0.89)−$5,000]=[$18,690−$5,000]

=$13,690

Expected ProfitLocation B=[(Expected Sales×(Rate per unit−Variable Cost))−Fixed Costs]=[($22,000×($2.65−$1.76))−$5,500]=[($22,000×$0.89)−$5,500]=[$19,580−$5,500]

=$14,080

Expected ProfitLocation C=[(Expected Sales×(Rate per unit−Variable Cost))−Fixed Costs]=[($23,000×($2.65−$1.76))−$5,800]=[($23,000×$0.89)−$5,800]=[$20,470−$5,800]

=$14,670

Hence, location C yields greatest profits.

Answer 14

b)

Summary Introduction

To determine: The location that yield with greatest profits.

Introduction: Location is where a firm chooses to site its operations. Location decisions can large effects on expenses and incomes. Location choices are normally quite imperative to both substantial and private companies. The area choice directly affects an operation's expenses and also its capacity to serve clients.

Answer 15

b)

Expert Solution

Answer to Problem 2P

“Location C” yields greatest profits.

Answer 16

b)

Expert Solution

Answer 17

b)

Expert Solution

Answer 18

Expert Solution

Answer 19

Explanation of Solution

Given Information:

It is given that the labor and material costs are $1.76 per sandwich, the cost of sandwich is $2.65. The rent and equipment cost for Location A is $5,000, Location B is $5,500 and Location C is $5,800. The expected sales for Location A are $21,000, Location B is $22,000 and Location C is $23,000.

Calculate the location that yield with greatest profits.

It is calculated by subtracting the rate per unit with variable costs and multiplying the result with expected sales and subtracting the whole with the fixed costs.

Expected ProfitLocation A=[(Expected Sales×(Rate per unit−Variable Cost))−Fixed Costs]=[($21,000×($2.65−$1.76))−$5,000]=[($21,000×$0.89)−$5,000]=[$18,690−$5,000]

=$13,690

Expected ProfitLocation B=[(Expected Sales×(Rate per unit−Variable Cost))−Fixed Costs]=[($22,000×($2.65−$1.76))−$5,500]=[($22,000×$0.89)−$5,500]=[$19,580−$5,500]

=$14,080

Expected ProfitLocation C=[(Expected Sales×(Rate per unit−Variable Cost))−Fixed Costs]=[($23,000×($2.65−$1.76))−$5,800]=[($23,000×$0.89)−$5,800]=[$20,470−$5,800]