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.What is the slope of the fixed-cost line for production in San Francisco?
A)$2,500,000
B)$25
C)$20

Question

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.What is the slope of the fixed-cost line for production in San Francisco?
A)$2,500,000 
B)$25 
C)$20

Quizplus · Accepted Answer

The slope of a fixed-cost line is 0 because fixed costs do not change with the level of production.

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