Use the Following Table to Answer the Question(s) Below

question 21

Multiple Choice

Use the following table to answer the question(s) below.

-A producer of contact lenses regularly takes samples of 100 lenses and inspects them for scratches. If a lens has a single scratch, it cannot be sold. The results of 10 samples are shown. What is the average proportion defective?

• A) 0.012
• B) 0.014
• C) 0.020
• D) 0.028
• E) 0.035

---

Definitions:

Fixed Cost

Costs that remain constant and do not vary with the level of business activity, including expenses like rent, salaries, and insurance.

Variable Cost

Expenses that change in proportion to the production output or sales of a company, such as raw materials and labor costs.

Measure Of Activity

A metric used to quantify the level of production or the volume of operations in a business.

Horizontal Analysis

A side-by-side comparison of two or more years’ financial statements.