Exhibit 2-8

question 68

Multiple Choice

Exhibit 2-8.Consider the following frequency distribution. Refer to Exhibit 2-8.How many observations are at least 15 but less than 18?

• A)3
• B)4
• C)5

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Definitions:

Total Fixed Costs

Expenses incurred by a business that do not vary with the level of production or sales, including lease payments and salaries of permanent staff.

Total Variable Costs

The sum of all costs that vary with the level of production, including materials and labor.

Total Variable Costs

The sum of all costs that vary directly with the level of production or output.

Total Fixed Costs

Expenses that do not change with the level of production or sales over a certain time period, such as rent or salaries.