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ABC Manufacturing has 6 machines that perform a particular task.Breakdowns occur frequently for this machine.Past records indicate that the number of breakdowns that occur each day is described by the following probability distribution: (a)What is the expected number of breakdowns in any given day?
(b)What is the variance for this distribution?
(c)What is the probability that there will be at least 2 breakdowns in a day?
Operating Leverage
The extent to which a company uses fixed costs in its operations, affecting its potential for higher profits or losses with changes in sales volume.
Selling Price
The amount of money for which something is sold to a buyer, after considering production, marketing, and distribution costs.
Fixed Cost
Fixed costs, including rent, salaries, and insurance, stay the same no matter how much is produced or sold.
Contribution Margin
The amount remaining from sales revenue after variable costs are deducted, contributing towards covering fixed costs and earning profit.
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