Please give me a tumbs-up…
Data given in the question—
Selling Price (P) = $3.5
Variable Cost (VC) = 2.7 per Unit
Fixed Cost (FC) =
FOR A=5800
For B= $5900
FOR C= $6150
A—Profit Given = $12000
Formula for profit= (P-VC)*Q-FC
Q=(PROFIT+FC)/(P-VC)
So quantity for location A= (12000+5800)/(3.5-2.7)
=22250 UNITS
So quantity for location B= (12000+5900)/(3.5-2.7)
=22375 units
So quantity for location C= (12000+6150)/(3.5-2.7)
=22688 units
B- Formula for profit= (P-VC)Q-FC
So sale for A,B,C location is 23000,26000,25000 respectively. It has been given in the question.
So profit for location A= (3.5-2.7)23000-5800
=$12600
So profit for location B= (3.5-2.7)26000-5900
=$14900
So profit for location C= (3.5-2.7)25000-6150
=$13850
C—Location B yields the greatest profit which is $14900
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