Exhibit 5-10

question 18

Multiple Choice

Exhibit 5-10.According to a study by the Centers for Disease Control and Prevention,about 33% of U.S.births are Caesarean deliveries (National Vital Statistics Report,Volume 60,Number 2,November 2011) .Suppose seven expectant mothers are randomly selected. Refer to Exhibit 5-10.The expected number of mothers who will not have a Caesarean delivery is ______.

• A)1.24
• B)2.31
• C)3.50
• D)4.69

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Definitions:

Variable Costs

Expenses that fluctuate directly with the volume of production or sales, such as raw materials and direct labor costs.

Fixed Costs

Constant expenditures that do not change with the volume of production or sales, such as rent or salaries.

Contribution Margin Ratio

A measure expressing how a product's selling price exceeds variable costs, shown as a percentage of the sales price.

Fixed Expenses

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance.