A Major Department Store Has Determined That Its Customers Charge

question 28

Short Answer

A major department store has determined that its customers charge an average of $500 per month, with a standard deviation of $80. Assume the amounts of charges are normally distributed.
a.What percentage of customers charges more than $380 per month?
b.What percentage of customers charges less than $340 per month?
c.What percentage of customers charges between $644 and $700 per month?

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Definitions:

Direct Materials

Raw materials that are directly incorporated into a finished product and can easily be traced to it.

Planning Budget

A budget prepared to anticipate the future financial position, operations, and resources of an entity based on expected income and expenses.

Facility Expenses

Costs related to the physical premises where business activities occur, including rent, utilities, and maintenance.

Direct Materials

Raw materials that are directly traced and integrated into a finished product and significantly contribute to its production cost.