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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 $1.80 per sandwich. Sandwiches sell for $2.59 each in all locations. Rent and equipment costs would be $5,080 per month for location A, $5,600 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 $10,000. (Do not round intermediate calculations. Round your answer to the nearest whole number.)


Location    Monthly Volume
A [removed]
B [removed]
C [removed]


b-1. If expected sales at A, B, and C are 20,300 per month, 22,900 per month, and 23,400 per month, respectively, calculate the profit of the each locations? (Omit the “$” sign in your response.)


Location       Monthly Profits
A $ [removed]
B $ [removed]
C $ [removed]


b-2. Which location would yield the greatest profits?
[removed] Location A
[removed] Location B
[removed] Location C



Problem 8-9


Location Score

(100 points each)
Weight A B C
  Convenience .15 87 72 69
  Parking facilities .20 82 85 97
  Display area .18 88 92 92
  Shopper traffic .27 94 90 84
  Operating costs .10 96 86 91
  Neighborhood .10 93 91 83




a. Using the above factor ratings, calculate the composite score for each location. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)


Location          Composite Score
A [removed]
B [removed]
C [removed]


b. Determine which location alternative (A, B, or C) should be chosen on the basis of maximum composite score.
[removed] A
[removed] B
[removed] C




Problem 8-12

A toy manufacturer produces toys in five locations throughout the country. Raw materials (primarily barrels of powdered plastic) will be shipped from a new, centralized warehouse whose location is to be determined. The monthly quantities to be shipped to each location are the same. A coordinate system has been established, and the coordinates of each location have been determined as shown. Determine the coordinates of the centralized warehouse. (Round  and  to 1 decimal place.)


Location (x,y)
A 4,7
B 8,3
C 4,6
D 4,1
E 6,4


   = [removed],  = [removed].




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