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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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