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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 $3.00 per sandwich. Sandwiches sell for $3.80 each in all locations. Rent and equipment costs would be $5,950 per month for location A, $5,975 per month for location B, and $6,225 per month for location C.
a. Determine the volume necessary at each location to realize a monthly profit of $12,750.
b. If expected sales at A, B, and C are 23,750 per month, 26,750 per month, and 25,750 per month, respectively, calculate the profit of the each locations?

Sagot :

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