In a Local Cellular Phone Area,company a Accounts for 60

question 94

Multiple Choice

In a local cellular phone area,company A accounts for 60% of the cellular phone market,while company B accounts for the remaining 40% of the market.Of the cellular calls made with company A,1% of the calls will have some sort of interference,while 2% of the cellular calls with company B will have interference.If a cellular call is selected at random,the probability that it will not have interference is

• A)0.014
• B)0.028
• C)0.14
• D)0.986

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Definitions:

Financial Reporting

The method of generating reports that reveal the financial condition of a company to its management, investors, and governmental bodies.

Conversion Cost

The total expense of converting raw materials into finished goods, including both direct labor and manufacturing overhead.

Manufacturing Overhead

Indirect factory-related costs that are incurred when a product is manufactured, including costs for management, equipment maintenance, and factory utilities.

Direct Labor Cost

This cost includes wages and benefits paid to employees who are directly involved in producing goods or providing services.