Felicia Wants to Know How Many Units She Must Sell

question 154

Multiple Choice

Felicia wants to know how many units she must sell to cover all of her costs. She indicates to you that her selling price is $20 per unit, her fixed costs are $6,000, and the variable costs per unit are $15. What is her break-even point?

• A) 300 units
• B) 400 units
• C) 1,200 units
• D) 1,100 units

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Definitions:

Significance Level

The significance level, often denoted as alpha, is the probability of rejecting the null hypothesis in a statistical test when it is actually true, representing the risk of a type I error.

Type I Error

The error made when a true null hypothesis is incorrectly rejected, often referred to as a "false positive."

P Value

The probability of obtaining test results at least as extreme as the results actually observed, assuming that the null hypothesis is true.

Confidence

The degree of certainty or trust in a statistical or experimental result, often expressed as a confidence interval or level.