A retired auto mechanic hopes to open a customizing shop installing heated or ventilated seats. The central city location would involve fixed monthly costs of $6,750 and labor, materials, and transportation costs of $26 per car. The outside location would have fixed monthly costs of $4,150 for labor, materials, and transportation costs of $33 per car. Dealer price at either location will be $90 per car. a. Which location will yield the greatest profit if monthly demand is (1) 250 cars? (2) 350 cars? 250: cars ___________yields the greatest profit 350: cars ____________ yields the greatest profit b. At what volume of output will the two sites yield the same monthly profit? (Round value to the nearest whole number>)
A retired auto mechanic hopes to open a customizing shop installing heated or ventilated seats. The central city location would involve fixed monthly costs of $6,750 and labor, materials, and transportation costs of $26 per car. The outside location would have fixed monthly costs of $4,150 for labor, materials, and transportation costs of $33 per car. Dealer price at either location will be $90 per car.
a. Which location will yield the greatest profit if monthly demand is (1) 250 cars? (2) 350 cars?
250: cars ___________yields the greatest profit
350: cars ____________ yields the greatest profit
b. At what volume of output will the two sites yield the same monthly profit? (Round value to the nearest whole number>)
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