Use the Following Information to Answer the Question

question 32

Short Answer

Use the following information to answer the question. Suppose that you are a researcher and that you want to research whether a home remedy that recommends applying a salve of tobacco and saliva to cuts or scrapes to absorb toxins really works. You decide to conduct a study to see whether there is an association between the treatment and the outcome. A positive outcome means that the patient reported lower pain levels and the wound had healed without infection in less than 14 days. The table below shows the results from your study. Assume all conditions for testing have been met.

-From a purely scientific point- of- view, would you suggest the tobacco and saliva salve to a co- worker who expressed an interest in home remedies? Explain why or why not.

Understand the basic concepts of cost accounting and identify different types of costs (fixed, variable).

Apply the high-low method to determine fixed and variable costs.

Calculate and understand the significance of the contribution margin and contribution margin ratio.

Understand the effect of changes in sales volume on costs and profitability.