The Following Data Relate to a Product Sold by Nelson

question 159

Essay

The following data relate to a product sold by Nelson Company:


$\begin{array}{lr}\text { Total variable costs } &\$ 90,000 \\\text { Total fixed costs } &27,000 \\\text { Predicted after-tax income (30\% tax) } &12,600\\\text { Contribution margin per unit } &5\end{array}$
(a)Calculate the number of units expected to be sold.
(b)Calculate the expected total dollar sales.

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Definitions:

Main Effect

The direct influence of an independent variable on a dependent variable in an experimental study, ignoring the effects of other variables.

Marginal Means

The average value of a variable at each level of another variable, often used in the analysis of variance.

Main Effect

The direct impact of an independent variable on a dependent variable, ignoring other potential influencing factors.

Significant

In statistics, it refers to results that are unlikely to have occurred by chance alone, according to a predefined threshold of probability (the significance level).