A Local Fraternity Is Deciding Between Three Different Refrigerators

question 49

Multiple Choice

A local fraternity is deciding between three different refrigerators. The refrigerators have a mean time between failure and mean time to repair as shown in the table. What refrigerator(s) will provide the greatest availability?

• A) Refrigerator A
• B) Refrigerator B
• C) Refrigerator C
• D) Refrigerator A and Refrigerator B
• E) Refrigerator A and Refrigerator C

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Definitions:

Fixed Manufacturing Overhead

Costs associated with production that do not vary with the level of output, such as rent and salaries of managers.

Variable Overhead

Costs that change in proportion to the level of production or activity within a business.

Direct Materials

Raw materials directly used in the manufacturing of a product, which can be directly attributed to the finished product.

Fixed Overhead

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance, which are necessary for a business's operations regardless of output.