Juan Has a Mental Age of 10 and an IQ

question 219

Multiple Choice

Juan has a mental age of 10 and an IQ of 125. How old is Juan?

• A)10
• B)5
• C)8
• D)12
• E)cannot tell from this information

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Definitions:

Cost-plus Pricing

A pricing strategy where the selling price is determined by adding a specific markup to the cost of producing or purchasing the product.

Return on Investment

Return on investment is a measure used to evaluate the efficiency or profitability of an investment, calculated as net income divided by the initial cost of the investment.

Selling Price

The amount at which a product or service is offered to customers, factoring in costs, desired profit margins, and market conditions.

Absorption Costing

An accounting system that factors in all production costs—direct labor, direct materials, and both fixed and variable manufacturing overheads—into the pricing of a product.