Exhibit 14-2

question 94

Multiple Choice

Exhibit 14-2.A statistics student is asked to estimate .She calculates the following values. Refer to Exhibit 14-2.Calculate b₁.

• A)-1.29
• B)-0.51
• C)0.51
• D)1.29

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, indicating the contribution of sales to covering fixed expenses.

Machine Hours

A measure of the amount of time a machine is operated, used as a basis for allocating manufacturing overhead to products.

Theory of Constraints

A management paradigm that focuses on identifying and addressing the most significant limiting factor (constraint) that hinders achieving a goal, and systematically improving that constraint until it is no longer the limiting factor.

Contribution Margin

Contribution margin is the amount by which a product's sales price exceeds its total variable costs, indicating how much contributes to covering fixed costs and generating profit.