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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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3 0
3 years ago
A company has a process that results in 34000 pounds of Product A that can be sold for $8 per pound. An alternative would be to
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Answer:

After calculating, we get to know that the Product A should be sell now because, it show a difference of $23,800 through which company can earn more in the future. As the company will be better off by $23,800

Explanation:

For calculation, following things need to be considered which is shown below:

1. Product A process costing = Pounds × Per pound price

                                            = 34,000 × $8

                                            = $272,000

2. Product A costing after selling = Pounds × sale price per pound

                                                   = 34,000 × $14

                                                   = $476,000

3. Difference of costing :

=  Product A costing after selling - Product A process costing

= $476,000 - $272,000

= $204,000

4. Invested amount = $227,800

5. Actual Difference = Invested amount - costing difference

                                  = $227,800 - $204,000

                                  = $23,800

After calculating, we get to know that the Product A should be sell now because, it show a difference of $23,800 through which company can earn more in the future. As the company will be better off by $23,800

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3 years ago
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