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Convertible model monthly contribution

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Reference no: EM132996543

The Car Lot is a New York car dealership located in a highly visible area along a prominent highway. Fred Barns, owner of The Car Lot, 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 $40,000 $30,000 $60,000 $25,000

Variable costs per unit 32,000 23,000 45,000 16,000

UNITS sold per 10 feet of front-row space per month 10 18 6 25

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

Multiple Choice

-$70,000.
-$30,000.
-$90,000.
-$60,000.
-$80,000.

Reference no: EM132996543

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