Erickson Center Case Study

Based on the analysis given to the different Kwik trip locations, I believe that the best option would be the Erickson Center location. For example although it has less benefits customer wise, it is open all year round and has more opportunity to stay open. Another example, cost of the land is $450,000 and since we started with an allowance of $750,000 to build our capital, this gives us a $300,000 incentive. While throughout the period, we have a continuing amount of customers, while at the lumber king’s stadium eventually after baseball season there would be a scarcity of customers. Although we get less customers throughout the year at the Erickson center, we also require less workers so less labor we have to pay for. With the amount of profit we make $100,000 per month times the whole year, equals $1,200,000.
This creates a total a profit of $1,380,000 per year, when we add the extra $300,000 from the beginning; we get 1,680,000 total profit per year. When we take out the expense of labor, which is $584,000 the final amount that we earn is $1,096,000. While the total amount for the lumber kings is $94,000 for the period. When I calculated how much we would have made in the time of baseball season, it would be $697,200. Overall, the amount of profit we made would exceed the amount of the other location. Although we collect an opportunity cost of an 85% profit increase, by choosing the Erickson center location. Based on all the results this is the Erickson center is the best choice\for the act of