Find the Value of a Normal Random Variable

question 49

Multiple Choice

Find the Value of a Normal Random Variable
-The amount of soda a dispensing machine pours into a 12 ounce can of soda follows a normal distribution with a standard deviation of 0.12 ounce. Every can that has more than 12.30 ounces of soda poured into it causes a spill and the can needs to go through a special cleaning process before it can be sold. What is the mean amount of soda the machine should dispense if the company wants to limit the percentage that need to be cleaned because of spillage to 3%

• A) 12.0744 oz
• B) 12.5256 oz
• C) 12.0396 oz
• D) 12.5604 oz

Recognize how variable and absorption costing impact the income statement presentation, specifically gross profit, contribution margin, and net profit.

Understand the application of variable and absorption costing in determining the cost of goods sold.

Grasp the implications of inventory level changes on operating income under both costing methods.

Identify costs associated with the manufacturing environment, such as controllable and uncontrollable costs.

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Definitions:

Second

A unit of time equal to one sixtieth of a minute, used as a standard measure of time.

Contracts

are legally binding agreements between two or more parties that are enforceable by law.

Promissory Estoppel

A legal principle preventing a party from withdrawing a promise made to a second party if the second party has reasonably relied on that promise to their detriment.

Incarceration

The act of confining someone in a prison or similar facility.