If a Business Had Sales of $4,000,000 and a Margin

question 109

Multiple Choice

If a business had sales of $4,000,000 and a margin of safety of 25%, the break-even point was

• A) $5,000,000
• B) $3,000,000
• C) $12,000,000
• D) $1,000,000

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Definitions:

Central Limit Theorem

A statistical theory that states that given a sufficiently large sample size from a population with a finite level of variance, the mean of all samples from the same population will be approximately equal to the mean of the population.

Sampling Distribution

The distribution of a statistic (like the mean) that would result from taking a large number of samples from a population.

Sample Size

The number of observations or data points in a sample used to estimate characteristics of a population.

Population Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of values in a population.