For the Current Year, Power Cords Corp

question 102

Multiple Choice

For the current year, Power Cords Corp. expected to sell 42,000 industrial power cords. Fixed costs were expected to total $1,650,000; unit sales price was expected to be $3,750; and unit variable costs were budgeted at $2,250.
Power Cord Corp.'s margin of safety ratio (MOS%) is (rounded to two decimal points) :

• A) 91.59%.
• B) 97.38%.
• C) 90.71%.
• D) 99.47%.
• E) 93.15%.

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Definitions:

Sampling Distribution

A probability distribution consisting of all possible values of a sample statistic.

Single Population

Refers to a group or set of similar items or individuals from which statistical data are gathered for analysis.

Chi-square Distribution

A probability distribution used in statistical significance tests, which is built on the sum of squared standard normal deviates.

Confidence Interval

A variety of numerical values, obtained from statistical analysis of a sample, which probably includes the value of an unseen population characteristic.