-Refer to Exhibit 2A

question 1

Multiple Choice

-Refer to Exhibit 2A.1. Calculate the coefficient of correlation.

• A) -0.456
• B) -0.354
• C) 0.000
• D) 0.456
• E) 3.538

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Definitions:

Break-Even Sales

The amount of revenue required to cover both the variable and fixed costs of a business, resulting in neither profit nor loss.

Margin Of Safety

The difference between actual sales and sales at the break-even point, providing a cushion that measures the business's ability to withstand sales fluctuations.

Current Sales

The total revenue generated from goods or services sold by a company during the current period.

Break-Even Sales

The amount of revenue required to cover both the fixed and variable costs of a business, indicating the point at which profit starts to be generated.