Problem 8-2 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 $1.70 cents per sandwich. Sandwiches sell for $2.61 each in all locations. Rent and equipment costs would be $5,030 per month for location A, $5,580 per month for location B, and $5,780 per month for location C.

a. Determine the volume necessary at each location to realize a monthly profit of $11,000. (Do not round intermediate calculations. Round your answer to the nearest whole number.) Location Volume

A

B

C

b-1. If expected sales at A, B, and C are 20,800 per month, 22,900 per month, and 23,100 per month, respectively, calculate the profit of the each locations? (Omit the “$” sign in your response.) Location Profits

A $

B $

C $

b-2. Which location would yield the greatest profits?

Location A

Location C

Location B