A CFO Is Looking at How Much of a Company's

question 33

Multiple Choice

A CFO is looking at how much of a company's resources are spent on computing.He samples companies in the pharmaceutical industry and developed the following stem-and-leaf graph. What would be the class length that would be used in creating a frequency histogram?

• A)1.4
• B)8.3
• C)1.2
• D)1.7
• E)0.9

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Definitions:

Allocate

The process of assigning or distributing resources or amounts to various accounts or periods.

Square Footage

The measurement of area, especially used in reference to the size of a building or room, calculated in square feet.

Contribution Margin

The amount remaining from sales revenue after all variable expenses have been deducted.

Contribution Margin

Contribution Margin is the selling price per unit minus the variable cost per unit, indicating how much of a product's sales contribute towards fixed expenses and profit.