A Manufacturing Process Has a 70% Yield, Meaning That 70

question 26

Multiple Choice

A manufacturing process has a 70% yield, meaning that 70% of the products are acceptable and 30% are defective. If three of the products are randomly selected, find the probability that all of
Them are acceptable.

• A) 0.343
• B) 0.429
• C) 2.1
• D) 0.027

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Definitions:

Common Fixed Expense

Overhead costs that are not directly attributed to a specific product or service but are shared across multiple business segments.

Divisional Segment Margin

The profit margin achieved by a specific division or segment of a company, indicating the profitability of that division.

Net Operating Income

The profit derived from a company's regular business operations, excluding deductions for interest and taxes.

Variable Costing

An approach in accounting where only direct materials, direct labor, and variable manufacturing overhead costs are considered in calculating the cost of products.