As an Incentive to Get New Customers, the Local Branch

question 16

Multiple Choice

As an incentive to get new customers, the local branch of a bank launched "bouncing for bucks." During this week long event, any customer opening a new checking account with the bank would have the opportunity to throw a bouncy rubber ball into a large box divided into squares.Each square was labeled with a dollar amount that would be deposited into his/her new checking account.The way the box was labeled is shown below.What is the probability that three customers in a row do not get $50?

• A)0.125
• B)0.001
• C)0.729
• D)0.970
• E)0.300

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Definitions:

Total Manufacturing Costs

The sum of all costs directly involved in the production of goods, including raw materials, direct labor, and manufacturing overhead.

Absorption Cost Approach

A method of costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - in the cost of a unit of product.

Manufacturing Costs

Expenses directly related to the production of goods, such as raw materials, labor, and factory overhead.

Direct Labor

The labor costs of workers who are directly involved in the production of goods or the provision of services.