A Brake Drum Is Stamped Maximum Diameter 203

question 32

Short Answer

A brake drum is stamped Maximum Diameter 203.5mm. What is the maximum diameter in inches (to three decimal places)that the drum can be used?

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Definitions:

Relevant Range

The range of activity or volume over which the assumptions about variable and fixed cost behaviors hold true, beyond which cost patterns may change.

Cost Behavior

The way in which a cost reacts to changes in the level of activity.

Fixed Cost

Costs that do not change with the level of production or output, remaining constant even as volume changes.

Relevant Range

The range of activity within which the assumptions about fixed and variable costs are valid. Beyond this range, cost behaviors may change.