Business, 17.02.2020 18:04 10040816

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 $2.70 per sandwich. Sandwiches sell for $3.50 each in all locations. Rent and equipment costs would be $5,800 per month for location A, $5,900 per month for location B, and $6,150 per month for location C.

a. Determine the volume necessary at each location to realize a monthly profit of $12,000.
b-1. If expected sales at A, B, and C are 23,000 per month, 26,000 per month, and 25,000 per month, respectively, calculate the profit of the each locations?
b-2. Which location would yield the greatest profits?

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The owner of Genuine Subs, Inc., hopes to expand the present operation by adding one new outlet. She...

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