Use the photo attached to answer the following question, 1.Using a numerical example, show how the demonstrate how the break-even analysis (graphical approach)  can be used to determine the best of three locations. SHOW WORKING

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Use the photo attached to answer the following question,

1.Using a numerical example, show how the demonstrate how the break-even analysis (graphical approach)  can be used to determine the best of three locations.

SHOW WORKING

Eve started a pizza business three years ago using the kitchen in her house. Customers call
to order their pizza and Eve will deliver. Her business has grown so much that she hired four
employees. Given the rate of growth, Eve decided to move her operations out of her kitchen
and build a separate kitchen for her pizza business. She would like to choose a location that
minimizes the total (or average) travel distance to deliver pizza to customers.
From historical records, Eve has decided that her customers are unevenly distributed
throughout her service area. To make her problem more manageable, she grouped the
customers in the same general area into six regions.
Transcribed Image Text:Eve started a pizza business three years ago using the kitchen in her house. Customers call to order their pizza and Eve will deliver. Her business has grown so much that she hired four employees. Given the rate of growth, Eve decided to move her operations out of her kitchen and build a separate kitchen for her pizza business. She would like to choose a location that minimizes the total (or average) travel distance to deliver pizza to customers. From historical records, Eve has decided that her customers are unevenly distributed throughout her service area. To make her problem more manageable, she grouped the customers in the same general area into six regions.
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