Tim Marlow, the Owner of the Clock Works, Wanted to Know

question 144

Multiple Choice

Tim Marlow, the owner of The Clock Works, wanted to know how many clocks he must sell in order to cover his fixed cost at a given price. Marlow knew that he had total fixed costs of $20,000 for equipment, taxes, and a bank loan. He also had a unit variable cost of $20 per clock for labor and materials. If the price Marlow charges for each of his clocks is $40, what is his break-even point quantity?

• A) 100 clocks
• B) 334 clocks
• C) 500 clocks
• D) 1,000 clocks
• E) 10,000 clocks

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Definitions:

Median

The middle value in a data set when the numbers are arranged in ascending or descending order, or the mean of the two middle numbers if the data set has an even number of values.

Systolic Blood Pressure

The pressure in the arteries when the heart beats, pushing blood through the blood vessel network.

Normal Model

A probability distribution that is symmetrical around its mean, showing that data near the mean are more frequent in occurrence.

Summary Statistics

Statistical values that provide an overview or summary of a set of data, including measures like mean and standard deviation.