Question

a business must make the difficult decision to shut down one of its manufacturing facilities. which facility will be closed if they decide to close the one with the lowest profit (revenue minus cost)?

	seattle	boise	phoenix	pittsburgh	charlotte
units (in thousands)	936	843	997	740	880
cost (in millions)	7.6	5.5	11.2	11.9	9.8

• pittsburgh
• phoenix
• charlotte
• seattle
• boise

Explanation:

Step1: Calculate Seattle's profit

$\text{Profit} = 12.6 - 7.6 = 5.0$ (millions)

Step2: Calculate Boise's profit

$\text{Profit} = 9.8 - 5.5 = 4.3$ (millions)

Step3: Calculate Phoenix's profit

$\text{Profit} = 19.5 - 11.2 = 8.3$ (millions)

Step4: Calculate Pittsburgh's profit

$\text{Profit} = 13.7 - 11.9 = 1.8$ (millions)

Step5: Calculate Charlotte's profit

$\text{Profit} = 14.5 - 9.8 = 4.7$ (millions)

Step6: Compare all profits

Order from lowest to highest: $1.8 < 4.3 < 4.7 < 5.0 < 8.3$

Answer:

Pittsburgh