M Studios Retails Their Own Brand of Camera That They

question 68

Multiple Choice

M Studios retails their own brand of camera that they manufacture in their plant for $500. The plant capacity is 1,000 units per month and variable costs are $225 per camera. Total fixed costs for the year are $2.16 million. How many cameras must be sold per month to have a net income of $40,000?

• A) 850
• B) 900
• C) 800
• D) 750
• E) 825

---

Definitions:

Standard Deviation

A measure of the dispersion of a set of data from its mean, indicating how spread out the data points are.

Return

A measure of the income generated by an investment relative to its cost, often expressed as a percentage.

Regression Equation

A statistical formula used to predict the value of a dependent variable based on one or more independent variables.

Adjusted Beta

A measure that estimates a security's future beta, adjusting for the tendency of a security's historical beta to revert towards the market average of 1.