Operating Company
Operating Company Has the Following Information Pertaining to Its

question 11

Multiple Choice

Operating Company
Operating Company has the following information pertaining to its two divisions for the current year: $\begin{array}{lrr}&\text { North }\\&\text { Division }&\text { South Division }\\\text { Variable selling and administrative expenses } & \$ 70,000 & \$ 90,000 \\\text { Direct fixed manufacturing expenses } & 35,000 & 100,000 \\\text { Sales } & 300,000 & 500,000 \\\text { Direct fixed selling and administrative expenses } & 30,000 & 70,000 \\\text { Variable manufacturing expenses } & 40,000 & 100,000\end{array}$ Common expenses are $50,000 for the current year.
-Refer to Operating Company. What is the net income?

• A) $41,000
• B) $65,000
• C) $215,000
• D) $325,000

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Definitions:

Simple Random Sampling

A sampling method where each member of a population has an equal chance of being selected.

Standard Deviation

An indicator of the degree of spread or divergence among values in a dataset.

Standard Error

A measure of the variability (spread) of sample means around the population mean.

Target Population

The population for which statistical inferences such as point estimates are made. It is important for the target population to correspond as closely as possible to the sampled population.