Reference no: EM1376701
Q. owner of Genuine Subs, Inc. hopes to expand present operation by adding one new outlet. She has studied three locations. Each would have same labour also materials costs (food, serving containers, napkins, etc.) of $1.76 per sandwich. Sandwiches sell for $2.65 each in all locations. Rent also equipment costs would be $5,000 per month for location A, $5,500 per month for location B, also $5,800 per month for location C.
Answer subsequent questions.
a. Determine monthly volume necessary at each location to realize a monthly profit of $10,000. Hint: you may do this problem manually for each location or recognize which break even analysis template from a previous lesson will provide answers very quickly.
b. If monthly expected sales volume at A, B, also C is 21,000, 22,000, also 23,000, respectively, determine profits at each location.
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: Determine monthly volume necessary at each location to realize a monthly profit of $10,000. owner of Genuine Subs, Inc. hopes to expand present operation by adding one new outlet.
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