A Cell Phone Salesperson Has Kept Records on the Customers

question 124

Short Answer

A cell phone salesperson has kept records on the customers who visited his store. Forty percent of the customers who visited the store were female. Furthermore, the data show that 35% of the females who visited his store purchased a cell phone, while 20% of the males who visited his store purchased a cell phone. Let A₁ represent the event that a customer is a female, A₂ represent the event that a customer is a male, and B represent the event that a customer will purchase a phone.
What is the probability that a male customer will purchase a cell phone?

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Definitions:

Contribution Margin

The amount of revenue from sales that exceeds variable costs, contributing to covering fixed costs and generating profit.

Operating Income

The profit realized from a business's operations, calculated by subtracting operating expenses from gross profit.

Absorption Costing

An approach to pricing that incorporates all production-related costs such as direct materials, direct labor, along with variable and fixed overhead expenses, into the product’s cost.

Variable Costing

An accounting method that includes only variable production costs (costs that vary with output) in product costs, while fixed costs are charged to the period they occur.