Exhibit 2-10

question 92

Multiple Choice

Exhibit 2-10.Automobiles traveling on a road with a posted speed limit of 65 miles per hour are checked for speed by a state police radar system.The following table is a frequency distribution of speeds. Refer to Exhibit 2-10.When using a polygon to graph quantitative data,what does each point represent?

• A)The lower limit of a particular class and its width
• B)The midpoint of a particular class and its associated frequency or relative frequency
• C)The midpoint of a particular class and its associated cumulative frequency or cumulative relative frequency
• D)The upper limit of a particular class and its associated cumulative frequency or cumulative relative frequency

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Definitions:

Fixed Costs

Expenses that do not change with the level of output or sales, such as rent, salaries, and insurance, essential for budgeting and financial planning.

Marginal Costs

Marginal costs refer to the additional cost incurred by producing one more unit of a product or service.

Avoidable Costs

Costs that you get back if you shut down operations.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials or labor expenses.