Use the Following to Answer the Questions Below

question 12

Multiple Choice

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.Assume the fixed costs and sales price in both locations are constants and the variable costs in San Francisco are as shown in the table.By how much would the variable cost in Tuttle have to rise to give both locations an identical break-even point for the Regular model?

• A)$0.40
• B)$5.40
• C)$10.40
• D)$15.40

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Definitions:

Reinforcement

In behavioral psychology, a process of encouraging or establishing a pattern of behavior by offering reward or punishment.

Quizzes

Short assessments used to measure knowledge, skills, or abilities in a specific area or subject.

Variable Interval

A schedule of reinforcement where a response is rewarded after an unpredictable amount of time has passed, used in operant conditioning to modify behavior.

Reinforcement

In behavioral psychology, a process that increases the likelihood of a behavior being repeated, usually by providing a reward.