A retired auto mechanic hopes to open a rustproofing shop. Customers would be local new-car dealers....

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A retired auto mechanic hopes to open a rustproofing shop.Customers would be local new-car dealers. Two locations are beingconsidered, one in the center of the city and one on the outskirts.The central city location would involve fixed monthly costs of$6,940 and labor, materials, and transportation costs of $30 percar. The outside location would have fixed monthly costs of $4,500and labor, materials, and transportation costs of $40 per car.Dealer price at either location will be $90 per car. a. Whichlocation will yield the greatest profit if monthly demand is (1)200 cars? (2) 300 cars? 200 cars: yields the greatest profit. 300cars: yields the greatest profit. b. At what volume of output willthe two sites yield the same monthly profit? Volume of outputcars

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Let total profit y Number of cars x total profit earnings fixed cost variable cost For center of the city y 90x 6940 30x y 60x 6940 1 For Outside location y 90x 4500 See Answer

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