The Company Conducts a Sensitivity Analysis Using a Variable Cost

question 92

Multiple Choice

The company conducts a sensitivity analysis using a variable cost of $10.50.The total variable cost estimate will be:

• A)$30,000
• B)$27,500
• C)$42,000
• D)$17,500
• E)None of the above

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Definitions:

Horizontal Axis

The x-axis in a graph, typically used to represent the independent variable.

Vertical Axis

An imaginary line that runs up and down, perpendicular to the horizontal plane.

Relative Frequency Histogram

A graphical representation of the relative frequency of various outcomes in a data set, showing how often each value occurs relative to the total number of values.

Bar Width

In the context of a bar chart or histogram, it refers to the thickness or size of each bar, which can affect the chart's readability and interpretation.