Exhibit 10

question 38

Multiple Choice

Exhibit 10.5.A producer of fine chocolates believes that the sales of two varieties of truffles differ significantly during the holiday season.The first variety is milk chocolate while the second is milk chocolate filled with mint.It is reasonable to assume that truffle sales are normally distributed with unknown but equal population variances.Two independent samples of 18 observations each are collected for the holiday period.A sample mean of 12 million milk chocolate truffles sold with a sample standard deviation of 2.5 million.A sample mean of 13.5 million truffles filled with mint sold with a sample standard deviation of 2.3 million.Use milk chocolate as population 1 and mint chocolate as population 2. Refer to Exhibit 10.5.Assuming the population variances are equal,compute the value of the appropriate test statistic.

Compute the expected contribution margin given a specific activity level.

Understand the cost formula for both variable and fixed expenses.

Determine net operating income using the contribution approach.

Analyze and calculate average fixed costs per unit at a defined activity level.

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Definitions:

Higher Prices

Increased costs for goods or services, often resulting from factors like high demand, low supply, or increased production costs.

Clicks-And-Mortar

Refers to businesses that combine online digital presence (clicks) with physical storefronts (mortar) to offer a comprehensive retail experience.

E-Book

A digital format of a book, accessible on electronic devices such as e-readers, tablets, and computers.

Degree of Digitization

The extent to which processes, operations, or systems are converted or adapted to digital form, impacting efficiency, accessibility, and innovation.