Better Bonds
Better Bonds Provided the Following Data -Refer to Plastic Gym

question 119

Multiple Choice

Better Bonds
Better Bonds provided the following data: $\begin{array}{lr}\text { Sales } & \$ 540,000 \\\text { Variable costs } & \$ 378,000 \\\text { Fixed costs } & \$ 120,000 \\\text { Expected production and sales in units } & 40,000\end{array}$
-Refer to Plastic Gym. The company expects tree house demand to increase from 4,000 to 8,000 units per year. How many jungle gyms are sold at break-even using this new sales mix?

• A) 668
• B) 875
• C) 1,002
• D) 2,625

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Definitions:

Floating

In sociological terms, refers to a state of being detached from traditional societal, cultural, or employment anchors.

Spuriousness

A situation in statistical analysis where a perceived correlation or association between two variables is actually caused by a third variable.

Correlation

A measure of how strongly two variables are related to each other.

Causation

The action of causing something, in research it generally refers to the relationship between variables where one variable directly affects another.