Figure 10-6
Multiple Products Co -Refer to Figure 10-6

question 31

Multiple Choice

Figure 10-6
Multiple Products Co. has predicted the following costs for this year for 100,000 units: $\begin{array}{lcc}&&\text { Selling and }\\&\text { Manufacturing }&\text { Administrative }\\\hline\text { Variable } & £ 400,000 & £ 100,000 \\\text { Fixed } & 600,000 & 300,000 \\\text { Total } & £ 1,000,000 & £ 400,000\end{array}$
-Refer to Figure 10-6. What is the mark up on variable costs needed to break even?

• A)100 per cent
• B)40 per cent
• C)140 per cent
• D)180 per cent

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Definitions:

Test Statistic

A calculated value used in statistical testing to determine the likelihood of a hypothesis.

Type II Error

A statistical error that occurs when one fails to reject a false null hypothesis, also known as a "false negative" finding.

Type I Error

The incorrect rejection of a true null hypothesis, also known as a "false positive" in hypothesis testing.

Specified

Clearly stated or identified; set forth explicitly.