If $\overline { \overline { X } }$ = 5)2 $\bar { R }$

question 16

Multiple Choice

If $\overline { \overline { X } }$

= 5) 2, $\bar { R }$
= ) 3,and n = 4,calculate the natural tolerance limits.

• A)[5.054,5.346]
• B)[4.3,6.1]
• C)[4.806,5.594]
• D)[4.763,5.637]

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Definitions:

Contribution Margin Ratio

The percentage of sales revenue that exceeds variable costs, indicating the portion contributing to fixed costs and profit.

Selling Price

The amount a customer pays to purchase a product or service from a business.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, due to fixed costs in a company's structure.

Net Income

This is the total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.