The owner of Genuine Subs, Inc., hopes to expand the present operation by adding one new outlet.
Question:
The owner of Genuine Subs, Inc., hopes to expand the present operation by adding one new outlet. She has studied three locations. Each would have the same labor and materials costs (food, serving containers, napkins, etc.) of $1.70 per sandwich. Sandwiches sell for $2.50 each in all locations. Rent and equipment costs would be $5,300 per month for location A, $5,650 per month for location B, and $5,900 per month for location C.
a. Determine the volume necessary at each location to realize a monthly profit of $9,500. (Do not round intermediate calculations. Round your answer to the nearest whole number.)
| Location | Monthly Volume |
| A | |
| B | |
| C | |
b-1. If expected sales at A, B, and C are 20,500 per month, 22,500 per month, and 23,500 per month, respectively, calculate the profit of the each locations? (Omit the "$" sign in your response.)
| Location | Monthly Profits |
| A | $ |
| B | $ |
| C | $ |
Expert Answer:
To calculate the volume necessary at each location to realize a monthly profit of 9500 we can use th... View the full answer
