Pennington Products Pennington Products Has Two Product Lines: R-100 and R-200

question 79

Multiple Choice

Pennington Products Pennington Products has two product lines: R-100 and R-200. Revenue and cost information for each of the product lines are as follows:
Pennington has common fixed expenses of $380,000 per year. Last year, the company produced and sold 35,000 units of R-100 and 25,000 units of R-200.
Refer to the Pennington Products information above. What is the company's overall net income?

• A) $1,260,000
• B) $ 775,000
• C) $1,300,000
• D) $ 920,000

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Definitions:

T-statistic

A type of statistic used to estimate the significance of a parameter derived from a sample data set.

Statistically Significant

A determination that the observed effects or differences in data are unlikely to have occurred by chance, according to a pre-determined threshold.

Null Hypothesis

A statement in statistical analysis that proposes there is no significant difference or relationship between specified populations, or no effect of a treatment.

Region of Rejection

The range of values in a statistical test that leads to the rejection of the null hypothesis, indicating a statistically significant result.