Use the Following to Answer the Questions Below

question 86

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.If executives decide to produce at the San Francisco plant but are nervous about sales numbers,which model would provide the greatest profit at the lowest sales volumes?

• A)regular
• B)large
• C)jumbo
• D)It doesn't matter because the fixed costs are the same for the same site.

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Definitions:

Welder

A skilled tradesperson who joins metal parts together using various welding techniques.

Protective Goggles

Eyewear designed to safeguard the wearer's eyes from hazardous substances, impacts, or light.

Affirmative Action

Policies and measures aimed at increasing the opportunities for historically disadvantaged groups by favoring them in various aspects such as employment and education.

Quotas

Fixed, quantitative targets that must be met within a certain time frame, often used in sales, production, and immigration policies.