Tim Marlow,the Owner of the Clock Works,wanted to Know How

question 258

Multiple Choice

Tim Marlow,the owner of The Clock Works,wanted to know how many clocks he must sell in order to cover his fixed cost at a given price.Tim knew that he had a fixed cost of $20,000 for equipment,taxes,and a bank loan.He also had a unit variable cost of $20 per clock for labour,materials,and promotional costs.If the price Tim charges for each of his clocks is $40,what is his break-even point quantity?

• A)10 clocks
• B)100 clocks
• C)1,000 clocks
• D)10,000 clocks

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Definitions:

Null Hypothesis

In statistics, the null hypothesis is a general statement or default position that there is no difference or effect within a particular set of observations or experiments.

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A number that tells us how much the observed counts in a statistical test differ from the counts we would expect if there were no relationship in the population.