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 $1.76 per sandwich. Sandwiches sell for$8.00 each in all locations. Rent and equipment 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.a. Determine the volume necessary at each location to realize a monthly profit of $10,000. (Do not round Intermediate calculations.Round your answer to the nearest whole number.)LocationMonthly VolumeABCb-1. If expected sales at A, B, and C are 21,000 per month, 22,000 per month, and 23,000 per month, respectively, calculate ge profitof the each locations? (Do not round Intermediate calculations. Round your answer to the nearest whole number.)LocationAMonthly ProfitsBCb-2. Which location would yield the greatest profits?e here to searchRT< Prev6 of 35Next >JO75°F Partly cloudy6&89GHتاتا كاكKPaltctri

Analyzing Profit Potential for Genuine Subs' ExpansionGenuine Subs is considering opening a new…

Answered: The owner of Genuine Subs, Inc., hopes…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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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, servingcontainers, napkins, etc.) of $1.30 per sandwich. Sandwiches sell for $2.10 each in all locations.Rent and equipment costs would be $5,100 per month for location A, $5,550 per month for location B, and $5,800 per month for location C. a. Determine the volume necessary at each location to realize a monthly profit of $8,500. LOCATION Monthly volume A. ______________ B. _______________ C. _______________ b. If expected sales at A, B, and C are 19,500 per month, 21,500 per month, and 22,500 per month respectively, calculate the profit. Location Montly Profits A. ___________________ B. ____________________ C. ____________________ Which location would yield the greatest…
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 $1.76 per sandwich. Sandwiches sell for $8.00 each in all locations. Rent and equipment 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. a. Determine the volume necessary at each location to realize a monthly profit of $10,000. (Do not round intermediate calculations. Round your answer to the nearest whole number.) Location Monthly Volume A B C b-1. If expected sales at A, B, and C are 21,000 per month, 22,000 per month, and 23,000 per month, respectively, calculate the profit of the each locations? (Do not round intermediate calculations. Round your answer to the nearest whole number.) e to search Location Monthly Profits O J SA O ? 75°F Partly cloudy 8 O P T Y H J CVBNMU L alt ctri pause
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, servingcontainers, napkins, etc.) of $1.78 cents per sandwich. Sandwiches sell for $2.43 each in all locations.Rent and equipment costs would be $5,000 per month for location A, $6,500 per month forlocation B, and $5,800 per month for location C.a. Determine the volume necessary at each location to realize a monthly profit of $10,000.b. If expected sales at A, B, and C are 22,000 per month, 21,000 per month, and 20,000 per month,respectively, which location would yield the greatest profits?
A small producer of machine tools wants to move to a larger building, and has identified two alternatives. Location A has annual fixed costs of $800,000 and variable costs of $14,000 per unit; location B has annual fixed costs of $920,000 and variable costs of $13,000 per unit. The finished items sell for $17,000 each.a. At what volume of output would the two locations have the same total cost?b. For what range of output would location A be superior? For what range would B be superior?
Amazon had planned to open a second headquarters in Brooklyn that would have allegedly added 25,000 jobs to the region, increased property values, generated more business for local store owners, and generated additional sales and income tax revenue for the government. Some people were concerned, however, that increased home prices could lead to higher rent for people who rented apartments in Brooklyn. Which of the following statements are true? O Allowing Amazon to locate its second headquarters in Brooklyn is a Pareto improvement (i.e., makes one or more persons better off without making anyone worse off) even if some renters will have to pay higher rent. O Allowing Amazon to locate its second headquarters in Brooklyn would not be Kaldor-Hicks efficient if some renters will have to pay higher rent. O Allowing Amazon to locate its second headquarters in Brooklyn is a Kaldor-Hicks improvement if the gain in jobs and tax revenue more than offsets any losses experienced by renters. O…
A small producer of machine tools wants to move to a larger building, and has identified two alternatives. Location A has annual fixed costs of $160,000 and variable costs of $15,000 per unit; location B has annual fixed costs of $360,000 and variable costs of $14,000 per unit. The finished items sell for $16,000 each. a. At what volume of output would the two locations have the same total cost? Volume of Output ____________unites b.1 For what range of output would location A be superior? (Enter your answer as a whole number. Do not include the indifference point in your answer.) Range of output 0 to ______________ b.2 For what range would B be superior? (Enter your answer as a whole number. Do not include the indifference point in your answer.) Range of output _________________or more
Location A would result in annual fixed costs of $300,000 and variable costs of $55 per unit. Annual fixed costs at Location B are $600,000 with variable costs of $32 per unit. Sales volume is estimated to be 30,000 units per year. Which location has the lower cost at this volume? How large is its cost advantage? At what volume are the two facilities equal in cost?
A producer of pottery is considering the addition of a new plant to absorb the backlog of demand that now exists. The primary location being considered will have fixed costs of $11,152 per month and variable costs of $1.23 per unit produced. Each item is sold to retailers at a price that averages $2.07 a) The volume per month is required in order to break even = Blank 1 (in whole number) b) The profit or loss would be realized on a monthly volume of 61,000 units Blank 2 c) The volume is needed to obtain a profit of $16,000 per month = Blank 3 (in whole number) d) The volume is needed to provide revenue of $23,000 per month = Blank 4 (in whole number)
A retail store in Adamstown, PA would result in annual fixed costs of $300,000 and variable costs of $55 per unit. Annual fixed costs at Allentown, PA site are $600,000 with variable costs of $32 per unit. Sales volume is estimated to be 30,000 units per year. Which location has the lower cost at this volume? How large is its cost advantage? At what volume are the two facilities equal in cost?
During a major expansion in 2004, Douwalla’s Import Company developed a new processing line for which the delivered equipment cost was $1.75 million. This year, the board of directors decided to expand into new markets and expects to build the current version of the same line. Estimate the cost if the following factors are applicable: construction cost factor is 0.20, installation cost factor is 0.50, indirect cost factor applied against equipment is 0.25, and the total plant cost index has risen from 2509 to 3713 over the years.
A producer of pottery is considering the addition of a new plant to absorb the backlog of demand that now exists. The primary location being considered will have fixed costs of $11,152 per month and variable costs of $1.23 per unit produced. Each item is sold to retailers at a price that averages $2.07 a) The volume per month is required in order to break even = ( ) (in whole number) b) The profit or loss would be realized on a monthly volume of 61,000 units = ( ) c) The volume is needed to obtain a profit of $16,000 per month = ( ) (in whole number) d) The volume is needed to provide revenue of $23,000 per month = ( ) (in whole number)
Dawson Electronics is a manufacturer of high-tech control modules for lawn sprinkler systems. Denise, the CEO, is trying to decide if the company should develop one of the two potential new products, the Water Saver 1000 or the Greener Grass 5000. With each product, Dawson can capture a bigger market share if it chooses to expand capacity by buying additional machines. Given different demand scenarios, their probabilities of occurrence, and capacity expansion versus no change in capacity, the potential sale of each product are summarized in the included table. Click the icon to view the table. What is the expected payoff for the Water Saver 1000 and the Greener Grass 5000, with and without capacity expansion? The expected payoff for the Water Saver 1000 with the capacity expansion is $ integer.) The expected payoff for the Water Saver 1000 without the capacity expansion is $. (Enter your response as an integer.) ਗਿਆ (Enter your response as an The expected payoff for the Greener Grass…

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