Question

The Owner of Genuine Subs, Inc. hopes to expand the present operations by
adding one new outlet. She has studies three locations. Each would have the same labor
material cost (food, serving containers, napkins, etc) of $1.76 per sandwich. Sandwich sells for
$8 each in all locations. Rent and equipment cost would be $5000 per month for location A,
$5,500 per month for location B, and $5,800 per month for location C.
a) Determine the volume necessary at each location to realize a monthly profit of $10,000.
(2 Marks)
b) If expected sales at A,B and C are 21000 per month, 22000 per month and 23000 per
month, respectively, which location would yields the greatest profit?

Answer 1

Answer:

The Owner of Genuine Subs, Inc. hopes to expand the present operations by

adding one new outlet. She has studies three locations. Each would have the same labor

material cost (food, serving containers, napkins