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VikaD [51]
3 years ago
10

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 $1.90 per sandwich. Sandwiches sell for $2.70 each in all locations. Rent and equipment costs would be $5,400 per month for location A, $5,700 per month for location B, and $5,950 per month for location C. a. Determine the volume necessary at each location to realize a monthly profit of $10,000.
Business
1 answer:
Lostsunrise [7]3 years ago
8 0

Answer and Explanation:

The computation of the volume necessary for each location is as follows;

a) Volume required for break even at location A

= ($5,400 + $10,000) ÷ ($2.70 - $1.90)

= 19,250 units

Volume required for break even at location B

= ($5,700 + $10,000) ÷ ($2.70 - $1.90)

= 19,625 units

Volume required for break even at location C

= ($5,950 + $10,000) ÷ ($2.70 - $1.90)

= 19,938 units

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