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The Parking Space is a New York car dealership located in a highly visible area along a prominent highway. Fred Barns, owner of The Parking

The Parking Space is a New York car dealership located in a highly visible area along a prominent highway. Fred Barns, owner of The Parking Space, is trying to decide how much front-row space along the highway to devote to each of four different car models. Fred has a maximum front-row space of 200 feet to devote to the four car models. He wants a minimum of 20 feet and a maximum of 80 feet of front-row space for each car model. Appropriate data on the four car models follow:

Convertible Truck Sedan SUV
Sales price per unit $ 37,000 $ 36,000 $ 59,000 $ 24,000
Variable costs per unit 32,000 31,000 37,000 10,000
Units sold per 10 feet of front-row space per month 12 23 11 25

The convertible model's monthly contribution per 10 feet of front-row space is:

Multiple Choice

  • $50,000.

  • $40,000.

  • $70,000.

  • $60,000.

  • $10,000.

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