Sand Art Sells Ceramic Pots

question 9

Multiple Choice

Sand Art sells ceramic pots. The pots sell for $30 each with variable costs totalling $25 per pot. Fixed costs are $50,000. The number of pots that have to be sold to break even is:

• A)10,000 pots.
• B)8,000 pots.
• C)2,000 pots.
• D)7,000 pots.

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Definitions:

Degrees of Freedom

The quantity of separate variables or numbers that are allowed to fluctuate during the evaluation without breaching any restrictions.

F-test

is a statistical test used to compare the variances of two populations to determine if they are equal or not.

F-test Statistic

A value used to determine if there are significant differences between the variances of two or more datasets.

MS

An acronym that can stand for Mean Square, a term used in ANOVA, indicating the average of the squares of differences (variances) within groups.