Exhibit 6-9 The Average Price of Personal Computers Manufactured by MNM Company

question 80

Multiple Choice

Exhibit 6-9
The average price of personal computers manufactured by MNM Company is $1,200 with a standard deviation of $220. Furthermore, it is known that the computer prices manufactured by MNM are normally distributed.
-Refer to Exhibit 6-9. If 513 of the MNM computers were priced at or below $647.80, how many computers were produced by MNM?

• A)185,500
• B)85,500
• C)513,000
• D)not enough information is provided to answer this question

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Definitions:

Direct Materials

Raw materials that can be directly attributed to the production process of a product and are clearly identified as part of the finished product.

Manufacturing Overhead

All manufacturing costs that are not directly involved in the production process, such as maintenance, supervision, and utilities.

Operating Expenses

Costs related to the normal operations of a business, such as salaries, rent, and utilities, but excluding cost of goods sold.

Property Taxes

Taxes assessed on real estate by the government, typically based on the property's value.