Exhibit 4-3

question 24

Multiple Choice

Exhibit 4-3.The 150 residents of the town of Wonderland were asked their age and whether they preferred vanilla,chocolate,or swirled frozen yogurt.The results are displayed next. Refer to Exhibit 4-3.What is the probability that a randomly selected customer prefers vanilla?

• A)0.13
• B)0.27
• C)0.33
• D)0.40

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Definitions:

Net Income

An entity's earnings after all expenses, including taxes and operating costs, have been deducted from revenues.

Physical Inventory

The process of counting and verifying the actual quantities of merchandise or goods in stock.

Absorption Cost

An accounting method that assigns all manufacturing costs (both fixed and variable) to products, making them fully absorbed into the cost of goods sold.

Fixed Overhead

The portion of a company's fixed costs that are not directly tied to production levels, such as rent and insurance.