Question: Expected annual profits from the Downtown location are $. Expected annual profits from the Suburban location are $. Therefore, the _________ location should be recommended.

Expected annual profits from the Downtown

Expected annual profits from the Downtown location are $__.

Expected annual profits from the Suburban location are $__.

Therefore, the _________ location should be recommended.

Sam Hutchins is planning to operate a specialty bagel sandwich kiosk but is undecided about whether to locate in the downtown shopping plaza or in a suburban shopping mall. Based on the following data, which location would you recommend? Location Downtown Annual rent, including utilities Expected annual demand (sandwiches) Average variable costs per sandwich Average selling price per sandwich $11,500 40,000 $1.55 $3.75 Suburban $7,500 20,000 $1.35 $2.50

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Question: Expected annual profits from the Downtown location are $__. Expected annual profits from the Suburban location are $__. Therefore, the _________ location should be recommended.

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Students Have Also Explored These Related General Management Questions!

Question: Expected annual profits from the Downtown location are $. Expected annual profits from the Suburban location are $. Therefore, the _________ location should be recommended.