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.

Question

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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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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]

=$14,670

Hence, location C yields greatest profits.

Answer 20

Ch. 8.6 - Prob. 1RQ Ch. 8.6 - Prob. 2RQ Ch. 8 - Prob. 1DRQ Ch. 8 - Prob. 2DRQ Ch. 8 - Prob. 3DRQ Ch. 8 - Prob. 4DRQ Ch. 8 - Prob. 5DRQ Ch. 8 - Prob. 6DRQ Ch. 8 - Prob. 7DRQ Ch. 8 - Prob. 8DRQ

Solution Summary: The author calculates the monthly volume at each location by adding realized profit with fixed costs and dividing the result with rate per unit subtracted by variable costs.

Concept explainers

Answer to Problem 2P

Explanation of Solution

Answer to Problem 2P

Explanation of Solution

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Chapter 8 Solutions