Answer:
Omaha would produce the greater gross profit of
Explanation:
revenue per unit $189
two possible locations:
Omaha Kansas City
fixed costs $1,000,000 $1,200,000
variable costs per u. $30 $45
expected sales 9,925 units 10,225 units
expected profits:
Omaha Kansas City
sales revenue $1,875,825 $1,932,525
- variable costs ($297,750) ($460,125)
- fixed costs <u> ($1,000,000) </u> <u>($1,200,000) </u>
gross profit $578,075 $272,400
