Use the Information Below to Answer the Following Questions -Refer to the Table Above

question 28

Multiple Choice

Use the information below to answer the following questions.
Unique Tables manufacture coffee tables made of recycled timber. Market research has suggested that there will be strong demand for the tables. Due to this, management is debating whether to lease a new turning machine to meet increased production. To assist in their decision-making, the management accountant has supplied the following information:
$\begin{array}{lll}&\text { Without }&\text { With }\\&\text { turning machine }&\text { turning machine }\\\text { Expected level of sales } & 1500 \text { units } & 1500 \text { units } \\\text { Sales price per unit } & \$ 150 & \$ 150 \\\text { Variable costs per unit } & \$ 120 & \$ 110 \\\text { Fixed costs } & \$ 7,500 & \$ 15,000\end{array}$
-Refer to the table above. As the level of sales increases above 1 500 units, the level of profit would increase:

• A)at the same rate with or without the turning machine.
• B)at a faster rate with the turning machine.
• C)at a faster rate without the turning machine.
• D)None of the above

---

Definitions:

Null Hypothesis

A statement positing that there is no significant difference or effect, serving as the default assumption in hypothesis testing.

Population Variance

A measure of the spread or dispersion within a dataset, representing the average of squared deviations from the mean.

Level of Significance

The likelihood of incorrectly dismissing the null hypothesis in a statistical analysis, frequently represented by the symbol alpha.

Population Variance

A measure quantifying the degree to which individual points in a whole population differ from the population mean.