Columbus Industries Makes a Product That Sells for $25 a Unit.The

question 132

Multiple Choice

Columbus Industries makes a product that sells for $25 a unit.The product has a $5 per unit variable cost and total fixed costs of $9,000.At budgeted sales of 2,000 units,the margin of safety ratio is:

• A) 22.5%.
• B) 10%.
• C) 77.5%.
• D) None of these.

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Definitions:

Mean

The average value obtained by dividing the sum of all values in a set by the number of values.

Population Standard Error

A measure that estimates the standard deviation of the sampling distribution of a statistic for a population.

Confidence Interval

A set of values generated from the study of a sample, anticipated to include the parameter of an unobserved population.

Mean

The average of a set of numbers, calculated by adding them together and dividing by the count of numbers.