In an Area of the Great Plains, Records Were Kept

question 40

Essay

In an area of the Great Plains, records were kept on the relationship between the rainfall (in inches) and theyield of wheat (bushels per acre). $$\begin{array} { l | c | c | c | c | c | c | c | c | c | } \text { Rainfall (in inches), x } & 10.5 & 8.8 & 13.4 & 12.5 & 18.8 & 10.3 & 7.0 & 15.6 & 16.0 \\\hline \text { Yield (bushels per acre), y } & 50.5 & 46.2 & 58.8 & 59.0 & 82.4 & 49.2 & 31.9 & 76.0 & 78.8\end{array}$$

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Definitions:

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Loss

The negative result from operations or other transactions when costs and expenses exceed revenues.

Unit Product Cost

The total cost (including materials, labor, and overhead) to produce a single unit of product.

Absorption Costing

An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - as part of the cost of a product.