The owner of Genuine Subs, Incorporated, 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 $1.20 per sandwich. Sandwiches sell for $2.00 each in all locations. Rent and equipment costs would be $5,050 per month for location A, $5,525 per month for location B, and $5,775 per month for location C.
a.
Determine the volume necessary at each location to realize a monthly profit of $8,250. Note: Do not round intermediate calculations. Round your answer to the nearest whole number.
b-1.
If expected sales at A, B, and C are 19,250 per month, 21,250 per month, and 22,250 per month, respectively, calculate the profit of each location?
b-2.
Which location would yield the greatest profits?
Location A
Location B
Location C
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