Use the Following to Answer the Questions Below

question 24

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.How many units of the Regular size must be sold each year to break even if production is at the San Francisco plant?

• A)fewer than 30,000 units
• B)more than 30,000 units but fewer than 80,000 units
• C)more than 80,000 units but fewer than 130,000 units
• D)more than 130,000 units

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Definitions:

Interest Rate

The interest rate is the amount charged by a lender to a borrower for the use of assets expressed as a percentage of the principal, often noted annually.

Total Investment

The overall amount of money allocated to purchasing assets or towards spending that is intended to generate future revenue.

Expected Flow

The anticipated movement or transfer of resources, information, or goods in a system over a period.

Future Benefits

The anticipated advantages or improvements in condition and well-being that are expected to occur in the future as a result of certain actions or investments.