Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. general management
  3. a retired auto mechanic hopes to open a rustproofi

A retired auto mechanic hopes to open a rustproofing shop. Customers would be local new-car dealers....

60.1K

Verified Solution

Question

General Management

A retired auto mechanic hopes to open a rustproofing shop.Customers would be local new-car dealers. Two locations are beingconsidered, one in the center of the city and one on the outskirts.The central city location would involve fixed monthly costs of$6,940 and labor, materials, and transportation costs of $30 percar. The outside location would have fixed monthly costs of $4,500and labor, materials, and transportation costs of $40 per car.Dealer price at either location will be $90 per car. a. Whichlocation will yield the greatest profit if monthly demand is (1)200 cars? (2) 300 cars? 200 cars: yields the greatest profit. 300cars: yields the greatest profit. b. At what volume of output willthe two sites yield the same monthly profit? Volume of outputcars

Answer & Explanation Solved by verified expert
4.1 Ratings (571 Votes)
Let total profit y Number of cars x total profit earnings fixed cost variable cost For center of the city y 90x 6940 30x y 60x 6940 1 For Outside location y 90x 4500    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Discuss how you would expect the financing choices of the following firms to differ and explain...

Finance
Q

HIV can be transmitted via.... Choose all that apply.blood & blood productsvertically from mother to...

Biology
Q

3 TER Two point charges A and B having charges Q respectively are placed at...

Physics
Q

46 Which coordinate point is in the solution set for the system of inequalities shown...

Geometry
Q

In a distribution where the mean is 80 and the standard deviation is 3, find...

Basic Math
Q

here are two Statistics class in the high school. Andrea is in the AP class...

Basic Math
Q

An equation of the line passing through the points 1 3 and 5 2 is...

Calculus
Q

4. 0.0720 . You want your portfolio beta to be 1.30. Currently, your portfolio consists...

Accounting
Q

Floyd Corporation has the following four items in its ending inventory. (1) Determine the amount...

Accounting
Q

Explain why the shareholders basis in the new stock received in a corporate reorganization is...

Accounting
Q

PR 10-47 (Algo) Comprehensive Problem on Variance Analysis (LO 10-1, 10-3, 10-6) Skip to question...

Accounting
Q

why is retiremnt planning important ?

Finance