Kelso Motor Parts Produces a Car Battery with a Useful

question 10

Multiple Choice

Kelso Motor Parts produces a car battery with a useful life that has a normal distribution.Average life is 40,000 miles, with a standard deviation of 1500 miles.What proportion of the batteries will have a useful life between 42,000 and 44,000 miles?

• A).157
• B).128
• C).088
• D).072
• E).163

Understand how to calculate and analyze gross margin.

Understand how to calculate and analyze net operating income.

Comprehend the distinction between product costs and period costs.

Understand the concept of opportunity cost in decision-making.

---

Definitions:

Loans

Money, goods, or services given to an individual or entity with the expectation of a future repayment, typically with interest.

Reserve Requirement

A central bank regulation that sets the minimum fraction of customer deposits and notes that each commercial bank must hold as reserves rather than lend out.

Deposits

Funds placed into an account at a banking institution for safekeeping and possible interest accrual.

Reserves

Reserves refer to funds or other assets that banks or financial institutions hold to meet unexpected demands or regulatory requirements.