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Question 52

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Use the following to answer the questions below.
Luvmatics plans to produce a new product.Three different models are planned: the Regular,Large,and Jumbo.The fixed costs depend on which of two locations are used;in San Francisco the fixed costs would be $2.5 million per year,but in Tuttle the fixed costs would be $1.2 million.Sale prices and variable costs for the three models are shown in the table. Use the following to answer the questions below. Luvmatics plans to produce a new product.Three different models are planned: the Regular,Large,and Jumbo.The fixed costs depend on which of two locations are used;in San Francisco the fixed costs would be $2.5 million per year,but in Tuttle the fixed costs would be $1.2 million.Sale prices and variable costs for the three models are shown in the table.   Table A.1 -Use the information in Table A.1.What is the slope of the fixed-cost line for production in San Francisco? A) $2,500,000 B) $25 C) $20 D) 0 Table A.1
-Use the information in Table A.1.What is the slope of the fixed-cost line for production in San Francisco?


A) $2,500,000
B) $25
C) $20
D) 0

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