Question
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
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$50,000.
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$40,000.
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$70,000.
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$60,000.
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$10,000.
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