A company needs to locate three departments (X, Y, and Z) in the three areas (I, II, and III) of a new facility. They want to mi
nimize interdepartmental transportation costs, which are expected to be $.50 per load meter moved. An analyst has prepared the following flow and distance matrices:Distances (meters)From/To I II IIII - 10 20II - 10III -Flows (loads per week)From/To X Y ZX - 0 80Y 30 - 150Z 100 130 -1. What are total weekly costs for an optimum layout?(A) $2,600(B) $6,200(C) $3,600(D) $8,200(E) $7,200
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Answer: The difference in daily profit by selling white bread instead of speciality bread is $22.
<u>Daily Profit from selling white bread:</u>
Selling Price per loaf $3 .0
Cost per loaf $1.5
Profit per loaf
No. of units sold per day 52
Profit per day
<u>Daily Profit from selling specialty bread:</u>
Selling Price per loaf $4.50
Cost per loaf $2.50
Profit per loaf
No. of units sold per day 28
Profit per day
Hence the difference in daily profit is