Vest Food Co $\begin{array}{ll}\$10.00 & \text { Unit selling price } \\6.00 & \text { Unit variable cost } \\960,000 & \text { Fixed costs }\end{array}$

question 68

Multiple Choice

Vest Food Co. has the following operating data: $\begin{array}{ll}\$10.00 & \text { Unit selling price } \\6.00 & \text { Unit variable cost } \\960,000 & \text { Fixed costs }\end{array}$ The company is contemplating moving to another state where direct labor costs can be reduced, thereby reducing the unit variable cost by 10%. The state where the company currently operates has offered to reduce property taxes to encourage Vest to stay. The minimum amount of property tax savings necessary to keep the company, assuming no other changes, would be:

• A) $152,016.
• B) $240,000.
• C) $208,696.
• D) $125,217.

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Definitions:

Nominal Data

Data that is categorized without a natural order or ranking, used for labeling variables without a quantitative value.

Population

The complete collection of objects or people that can be used to draw samples for statistical study.

Multinomial Experiment

A statistical experiment that can result in multiple outcomes, where each outcome has a fixed probability of occurring.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution or calculation, essential for determining the preciseness of an estimation or hypothesis test.