The owner of a sandwich shop hopes to add one new outlet. She has studied three locations.

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The owner of a sandwich shop hopes to add one new outlet. She has studied three locations. Each would have the same labour and materials costs (food, serving containers, napkins, etc.) of $1.76 per sandwich. Sandwiches sell for $2.65 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 quantity necessary at each location to realize a monthly profit of $ 10,000.
b. If expected sales at locations A, B, and C are 21,000, 22,000, and 23,000 sandwiches per month, respectively, w location would yield the greatest profit?
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Operations Management

ISBN: 978-0071091428

4th Canadian edition

Authors: William J Stevenson, Mehran Hojati

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