The Relationship Between Two Quantities X and Y Is Examined,and

question 57

Multiple Choice

The relationship between two quantities x and y is examined,and the association is shown in the scatterplot below. Describe the association between these variables shown in the scatterplot.

• A)Fairly linear,negative,weak relationship
• B)Fairly linear,negative,strong relationship
• C)Fairly linear,positive,weak relationship
• D)Fairly linear,positive,strong relationship
• E)Fairly exponential,strong relationship

Calculate and interpret contribution margin and contribution margin ratio.

Apply the high-low method to estimate variable and fixed costs.

Understand the concept and calculation of the margin of safety.

Evaluate the effects of changes in sales, costs, and prices on a company's break-even point and profitability.

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Definitions:

Business Partnership

A legal form of business operation between two or more individuals who share management and profits.

Discount Rate

The interest rate charged to commercial banks and other depository institutions for loans received from the central bank.

Rate of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Bond Yield

The return an investor realizes on a bond, calculated as the annual interest payment divided by the bond's current market price.