A school teacher intends to open an edutainment camp. Customers would be primary school children. Two locations are being considered, one in the center of the city and one on the outskirts. The central city location would involve fixed monthly costs of $6,600 and labor, materials, and transportation costs of $22 per child. The outside location would have fixed monthly costs of $4,000 and labor, materials, and transportation costs of $31 per child. Camp price at either location will be $84 per child.

a. Which location will yield the greatest profit if monthly demand is (1) 190 children? (2) 290 children?

190 children:  (Click to select)  Outside  City  yields the greatest profit.

290 children:  (Click to select)  City  Outside  yields the greatest profit.

b. At what volume of output will the two sites yield the same monthly profit?

Volume of output             children

Answer rating: 100% (QA)

a 1 190 Children Central City Profit Revenue Expense 84190 6600 22190 5180 Outside City Pro... View the full answer