The Cabinet Shoppe Is Considering the Addition of a New

question 140

Multiple Choice

The Cabinet Shoppe is considering the addition of a new line of kitchen cabinets to its current product lines. Expected cost and revenue data for the new cabinets are as follows: If the new cabinets are added, it is expected that the contribution margin of other product lines at the cabinet shop will drop by $20,000 per year.


-What is the lowest selling price per unit that could be charged for the new cabinets from the following list and still make it economically desirable to add the new product line?

• A)$160
• B)$164
• C)$171
• D)$151

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Definitions:

MANOVA

Multiple analysis of variance. This procedure is used when there are multiple dependent variables. See also ANOVA.

Multivariate Analysis

A statistical approach that examines the relationship between multiple variables in order to understand patterns and influences.

Statistical Significance

The probability that a computed statistic such as a t-test or correlation is not due to chance.

T Test

A statistical test used to compare the means of two groups, determining if there is a significant difference between them.