Vending Machines on a College Campus Offer a Variety of Snacks.The

question 4

Multiple Choice

Vending machines on a college campus offer a variety of snacks.The purchasing agent believes that each type of snack is equally preferred by students and consequently orders equal quantities.The number of snacks sold from vending machines on this campus for the last six months is shown in the following table.If the purchasing agent is correct, how many candy bars would we expect to have been sold?

• A)170
• B)198
• C)125
• D)180
• E)680

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Definitions:

Residual Income

The income that remains after subtracting all required costs of capital from operating profit, a measure of profitability.

Activity Base

A measure used to allocate costs in activity-based costing, reflecting the level of effort or consumption of resources.

Service Departments

Units within an organization that support other departments but do not directly contribute to revenue generation, such as IT and HR.

Profit Margin

A financial ratio indicating the percentage of revenue that remains as profit after accounting for the cost of goods sold and other expenses; a measure of profitability.