Luvmatics Plans to Produce a New Product -Use the Information in Table A

question 62

Multiple Choice

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.
$$\begin{array} { | l | c | c | c | } \hline \text { Table A 1 } & & { \text { Model } } \\\hline \text { } & \text { Regular } & \text { Large } & \text { Jumbo } \\\text { Variable Cost} & \$ 5 \text { /unit }& \$ 7 \text { /unit } & \$ 10 / \text { unit } \\\text { Sale Price } & \$ 25 / \text { unit } & \$ 41 \text { /unit } & \$ 68 / \text { unit } \\\hline\end{array}$$
-Use the information in Table A.1.What is the difference in break-even points for the Large model between Tuttle and San Francisco?

• A) Fewer than 25,000 units
• B) Between 25,000 units and 40,000 units
• C) Between 40,000 units and 55,000 units
• D) More than 55,000 units

---

Definitions:

Practice

The repeated exercise or application of an activity or skill to acquire or maintain proficiency in it.

Momentary Physical Interaction

Brief and temporary physical contact or engagement between individuals or entities.

Selman's Stages

A theory proposed by Robert Selman, outlining the development of social cognition in children and adolescents through five stages of perspective taking.

Non-Oppressive

describes practices or systems that do not exert dominance or cause harm, fostering equality and fairness.