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The Manager at the Yarn Factory Changed the Price of Spools

question 153

Multiple Choice

The manager at the Yarn Factory changed the price of spools to increase sales. The current price per unit is $13.85 per box of 500 spools; and, the forecasted lower price per unit to increase sales is $11.55 per box of 500 spools. If the variable expenses remain at $8.79 and the fixed expenses remain $3000 how many units must be sold at the new price to breakeven? Compute the contribution margin per unit using the old sales price. Next, compute the contribution margin per unit using the new sales price. Use the new unit contribution margin to compute breakeven sales in units. What is the breakeven sales in units?

Understand the concept and application of Chi-Square tests for independence and goodness-of-fit.

Calculate and interpret P-values in hypothesis testing.

Identify whether variables are independent or associated based on statistical evidence.

Apply hypothesis testing to real-world situations involving categorical data.

Definitions:

Realty

Refers to real estate or real property, encompassing land and anything permanently attached to it, such as buildings.

Permanently Injures

Causes lasting physical or mental damage to a person, affecting their abilities or quality of life indefinitely.

Joint Tenants

A form of property co-ownership where two or more parties hold equal shares, and upon the death of one, the surviving joint tenant(s) automatically receive the deceased's share.

Heirs

Individuals legally entitled to receive property from a deceased person's estate under a will or through intestacy.