Genosis Metals Provided the Following Information for Last Month If Sales Reduce to Half the Amount in the Next

question 59

Multiple Choice

Genosis Metals provided the following information for last month: $$\begin{array} { l r } \text { Sales } & \$ 20,000 \\\text { Variable costs } & 8,000 \\\text { Fixed costs } & 4,000 \\\text { Operating income } & \$ 8,000 \\\hline\end{array}$$ If sales reduce to half the amount in the next month,what is the projected operating income?

• A) $0
• B) $4,000
• C) $2,000
• D) $6,000

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Definitions:

Mean Deviation

A measure of the average distance between each data point in a set and the mean of the data set, reflecting the dispersion or spread.

Deviations

Differences between observed values and some reference value, often the mean of the set.

Conservative Estimates

Estimates made cautiously to ensure that the actual value is not likely to exceed the estimated value.

Sample Statistics

Statistics calculated from a sample and used to estimate parameters of the total population.