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Business, 24.03.2020 20:41 azeezat728

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 location would involve fixed monthly costs of $7,000 and labor, materials and transporation cost $30 per car. The outside location would have fixed monthly cost of $4,700 and labor materials, and transporation cost of $40 per car. Dealer price at either location will be $90 per car

which location will yield the greatest profit if monthly demand is (1) 200 cars ? (2) 300 cars?

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

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