Question: Using the following factor ratings, determine which location alternative ( X , Y , or Z ) should be chosen on the basis of maximum

Using the following factor ratings, determine which location alternative (X, Y, or Z) should be chosen on the basis of maximum composite score.
Location Score
Factor
Weight
X
Y
Z
Convenience
0.15
80
70
60
Parking facilities
0.27
88
76
92
Display area
0.18
94
88
90
Shopper traffic
0.20
98
86
80
Operating costs
0.10
86
90
85
Neighborhood
0.10
82
83
72
Rent and equipment costs (all fixed costs) would be $5,000 per month for Location A, $5,500 for location B, and $6,000 for Location C.
Required :
a. Determine the volume (Q) necessary for each location to realize a monthly profit of $15,000. Rounded to the nearest whole number.
b. If expected sales (in units) at A, B, and C are 22,000 per month, 24,000 per month, and 26,000 units per month, respectively, which location would yield the highest profits.
Hint: You would need to compute the profit for each location first before you selected the best location.

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