The Odds in Favor of an Event Are 1:5

question 89

Essay

The odds in favor of an event are 1:5. Find the probability that the event will occur.

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Definitions:

Break-Even Point

The level of sales at which total revenues equal total costs, resulting in no net loss or gain.

Sales Mix

The composition of a company’s product or service sales, showing the relative proportions of each product or service sold.

Net Income

The total revenue minus total expenses, indicating the profitability of a company over a specific period.

Contribution Margin Ratio

The ratio of Contribution Margin to Sales Revenue, measuring the percentage of each sales dollar available to cover fixed costs and profit.