Question: The As-You-Like-It Hamburger Shop is considering adding a new location. The investment at each of the four potential sites is the same. The price they
- The As-You-Like-It Hamburger Shop is considering adding a new location. The investment at each of the four potential sites is the same. The price they can charge for hamburgers is set by the competition in the area.
Given the information below, which site is expected to be the most profitable?
| Factor | Site A | Site B | Site C | Site D |
| Fixed Cost | $10,000 | $8,000 | $6,000 | $11,000 |
| Variable Cost per Unit | $ 0.70 | $ 0.70 | $ 0.85 | $ 0.65 |
| Price per Unit | $ 1.30 | $ 1.20 | $ 1.25 | $ 1.10 |
| Forecast Volume (Units) | 20,000 | 22,000 | 18,000 | 24,000 |
2. Given the retail location coordinates and the value of material movement in the following chart, find the best supply point location using the center-of-gravity method.
| Retail Outlet | Location Coordinates X, Y | Material Movement |
| 1 | 25, 05 | 1,500 |
| 2 | 17, 20 | 3,000 |
| 3 | 12, 12 | 1,000 |
| 4 | 06, 09 | 2,200 |
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