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

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The owner of Genuine Subs, Inc., hopes to expand the presentoperation by adding one new outlet. She has studied threelocations. Each would have the same labor and materials costs(food, serving containers, napkins, etc.) of $1.90 per sandwich.Sandwiches sell for $2.70 each in all locations. Rent and equipmentcosts would be $5,400 per month for location A, $5,700 per monthfor location B, and $5,950 per month for location C.

a. Determine the volume necessary at each location to realize amonthly profit of $10,000. (Do not round intermediate calculations.Round your answer to the nearest whole number.) Location MonthlyVolume

A

B

C

b-1. If expected sales at A, B, and C are 21,000 per month,23,000 per month, and 24,000 per month, respectively, calculate theprofit of the each locations? (Omit the "$" sign in your response.)Location Monthly Profits

A $

B $

C $

b-2. Which location would yield the greatest profits?

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Answer to question a Following may be noted Total Profit Total revenue Total cost Total revenue Total labour and material cost Rent and equipment cost Price Sandwich x N Labour    See Answer
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