Jimbo Elrod has obtained fixed and variable cost information for four potential locations for his professional wrestling school and summarized it in tabular form below.All values are in dollars.

-Jimbo plans to charge the same amount for tuition regardless of where he decides to establish his school.If he believes that 700 students will matriculate each year,which location will result in the lowest total cost?
A)Location A
B)Location B
C)Location C
D)Location D

Question

Jimbo Elrod has obtained fixed and variable cost information for four potential locations for his professional wrestling school and summarized it in tabular form below.All values are in dollars.
 
-Jimbo plans to charge the same amount for tuition regardless of where he decides to establish his school.If he believes that 700 students will matriculate each year,which location will result in the lowest total cost?
A)Location A 
B)Location B 
C)Location C 
D)Location D

Quizplus · Accepted Answer

To calculate the total cost, we add the fixed cost and the variable cost for each location. 
- For Location A: 50,000 + 200(700) = 150,000
- For Location B: 75,000 + 150(700) = 180,000
- For Location C: 100,000 + 125(700) = 162,500
- For Location D: 125,000 + 100(700) = 195,000

Thus, Location B has the lowest total cost of $180,000.

Jimbo Elrod Has Obtained Fixed and Variable Cost Information for Four