To Evaluate Which of a Set of Curves Fits the Data

question 2

Multiple Choice

To evaluate which of a set of curves fits the data best,we can use:

• A) APE
• B) MAPE
• C) R²
• D) NPV

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Definitions:

Fixed Costs

Charges that are unaffected by production or sales volume, for example, monthly rent or payroll expenses.

Selling Price

The price at which a product or service is offered to customers.

Contribution Margin Ratio

The percentage of sales revenue that exceeds variable costs, indicating the portion of sales available to cover fixed costs and generate profit.

Fixed Costs

Expenses that do not fluctuate with changes in production level or sales volume, such as lease payments, salaries, and insurance.