Farmers' Industries Has Fixed Costs of $600000 and Variable Costs

question 66

Multiple Choice

Farmers' Industries has fixed costs of $600000 and variable costs are 60% of sales. How much will Farmers report as sales when its net income equals $60000?

• A) $1650000
• B) $1100000
• C) $1560000
• D) $396000

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Definitions:

Prediction Interval

A prediction range indicating where future data points are likely to land, based on existing observations, with a specified level of confidence.

T-Table Values

Specific points from the Student's t-distribution that are used in hypothesis testing to determine critical values.

Simple Linear Regression

A statistical method that models the relationship between a dependent variable and a single independent variable, showing a linear association.

API Gravity

A measure to determine the density or specific gravity of crude oil, indicating how light or heavy the oil is compared to water.