Use This Example to Answer the Question

question 29

Multiple Choice

Use this example to answer the question.On an island in the South Pacific,there is a population of 1,000 South Pacific Splendor Birds.There is no immigration or emigration but there are 40 births and 20 deaths per year.
-The annual percentage rate of this population is

• A)0)02%.
• B)2)0%.
• C)20%.
• D)-0.02%.
• E)-2%.

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Definitions:

Variable Costs

Spendings that move in tandem with the level of output or number of sales.

Sales Dollars

The total revenue generated from the sale of goods or services before any expenses are deducted.

Break-Even Point

The production level or sales volume at which total revenues equal total expenses, resulting in no net loss or gain.

Contribution Margin

The difference between sales revenue and variable costs, which contributes towards covering fixed costs and earning profit.