Brewster Café Has Estimated That Fixed Costs Per Month Are

question 47

Multiple Choice

Brewster Café has estimated that fixed costs per month are $114,840 and variable cost per dollar of sales is 42%.Sales during June totaled $220,000.What is the break-even point per month in sales?

• A)$273,429
• B)$198,000
• C)$22,000
• D)None of these answer choices are correct.

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Definitions:

Reject

In statistical hypothesis testing, to "reject" means to discard the null hypothesis in favor of the alternative hypothesis based on the evidence provided by the sample data.

Type I

A type of error in statistical hypothesis testing, occurring when the null hypothesis is wrongly rejected.

Type II

Refers to a Type II error in statistical hypothesis testing, which occurs when a false null hypothesis is not rejected.

Type I Error

The incorrect rejection of a true null hypothesis, often denoted as a false positive.