Here are two questions. answer them and upload on LMS. Do not send by email.

1. A retired auto mechanic hopes to open a rustproofing shop. Customers would be local new-car dealers. 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 $7,000 and labor, materials, and transportation costs of $30 per car. The outside location would have fixed monthly costs of $5000 and labor, materials, and transportation costs of $35 per car. Dealer price at either location will be $90 per car.

a. Which location will yield the greatest profit if monthly demand is 300 cars?

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

	CENTRE	OUTSKIRT
FC	7000	5000
VC	30	35
price	90	90
D-200	5000	6000
D-300	11000	11500