Lake Louise Company Makes Treadmills -Refer to the Figure

question 135

Multiple Choice

Lake Louise Company makes treadmills. The company controller wants to calculate the fixed and variable costs associated with the janitorial costs incurred in the factory. Data for the past four months were collected. $\begin{array}{lrr}& \text { Janitorial } & \text { Machine } \\\text { Month } &\text { costs } & \text { hours }\\\text { September } & \$ 11,000 & 575 \\\text { October } & 11,400 & 610 \\\text { November } & 10,200 & 510 \\\text { December } & 10,725 & 550\end{array}$
-Refer to the Figure.What would be Lake Louise Company's estimate of total janitorial cost at a level of 625 machine hours?

• A)$4,080
• B)$6,120
• C)$7,500
• D)$11,580

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Definitions:

Extremely Negative Returns

Refers to significantly below-average returns on investments, often resulting in substantial losses.

Value At Risk

A financial metric used to estimate the potential loss in value of a portfolio over a defined period for a given confidence interval.

Extreme Negative Returns

Significantly below-average returns, often considered outliers, that can severely impact an investment's overall performance.

Expected Shortfall

A risk measure that estimates the expected loss of a portfolio in the worst-case scenario of a given percentage of times.