Reference no: EM132248236
The owner of genuine subs, Inc 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 $1.50 per sandwhich. Sandwiches sell for $2.70 each in all locations. Rent and equipment costs would be $5,060 per month A, $5,530 per month for location B, and $5,760 per month for location C.
a. Determine the volume necessary at each location to realize a monthly profit of $10,000. (do not round intermediate calculations. Round your answer to the nearest whole number.
b. If expected sales at A,B and C are 20,900 per month, 22,200 per month, and 22,900 per month,respectively, calculate the profit of each locations?