Daley CoManufactures Computer Monitors

question 71

Essay

Daley Co.manufactures computer monitors.Following is a summary of its basic cost and revenue data: Assume that Daley Co. is currently selling 700 computer monitors per month. Fixed costs are expected to be $96,000.
Required:
Calculate Daley Co.'s margin of safety ratio (MOS %) if 700 units are sold. Round your answer to 2 decimal places, e.g., 0.1234 would be 12.34%.

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Definitions:

Sample Proportion

The fraction or percentage of observations in a sample that belong to a particular category, used to estimate the proportion in the entire population.

Two-Tailed Hypothesis

A statistical test hypothesis that considers both directions of deviation from the null hypothesis, thus testing for the possibility of both positive and negative effects.

Population Proportion

The ratio of a specific subgroup within a population to the entire population, typically expressed as a percentage.

Independent Random Samples

Samples selected from a population in such a way that each member has an equal chance of being chosen, with no dependence between the selections.