Exhibit 1A -Refer to Exhibit 1A

question 4

Multiple Choice

Exhibit 1A.1
$$\begin{array} { c c } \text { Probability } & \text { Rate of Return } \\\hline .15 & - .10 \\.15 & - .20 \\.35 & .00 \\.25 & .15 \\.10 & .15\end{array}$$
-Refer to Exhibit 1A.1.The coefficient of variation of this investment is

• A) -0.06
• B) -0.65
• C) 6.60
• D) 16.53
• E) 165.10

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Definitions:

Fixed Factory Overhead

Indirect manufacturing costs that remain relatively constant regardless of the level of production, such as rent, utilities, and salaries of managers.

Incremental Analysis

A decision-making process used to determine the financial impact of different choices by comparing their costs and benefits.

Variable Manufacturing Overhead

Costs that fluctuate with production levels, including utilities and indirect materials.

Incremental Analysis

An examination of the additional benefits and costs of certain business decisions, comparing alternatives by their financial impacts.