An Apple Juice Producer Buys All His Apples from a Conglomerate

question 61

Multiple Choice

An apple juice producer buys all his apples from a conglomerate of apple growers in one northwestern state.The amount of juice squeezed from each of these apples is approximately normally distributed with a mean of 2.25 ounces and a standard deviation of 0.15 ounce.77 percent of the apples will contain at least how many ounces of juice?

• A)2.12
• B)2.38
• C)2.36
• D)2.14

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Definitions:

Unit Variable Cost

The cost that varies directly with the production output, altering with the volume of production.

Fixed Costs

Costs that do not change with the level of production or sales activities within a relevant range, such as rent, salaries, and insurance premiums.

Net Income

The total earnings of a company after subtracting all expenses and taxes from total revenue.

Break-even Level

The point at which total costs equal total revenues, resulting in neither profit nor loss.