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The owner of Genuine subs, inc hopes to expend the present operation by adding one new outlet. She has studied three locations .each will have the same labor and materails cost of $ 1.76 cents per sandwiches sell for $ 2.65 each in all locations. Rent and equipments costs would be $5,000 per month for location A, $5,500 per month for location B and $5,800 per month for location C.

1_Determine the volume necessary at each location to realize a monthly profit for $10,000

 

2_ if expected sales at A,B and C are 21,000 per month 22,000 per month and 23,000 per month respectively which location would yield the greatest profits

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M91640504

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