A Retailer Claims That 90% of Its Customers Are "Pleased

question 25

Multiple Choice

A retailer claims that 90% of its customers are "pleased" or "very pleased" with the customer service. In a survey of 300 customers taken last week, what is the probability that between 80% and 90% will be "pleased" or "very pleased" with the service?

• A) 0.1736
• B) 0.5736
• C) 0.3464
• D) Almost 100%
• E) Almost 50%

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Definitions:

Contribution Margin Ratio

The percentage of each sales dollar remaining after variable costs have been deducted.

Fixed Expenses

Costs that do not change with the level of output or sales in the short term, such as rent or salaries.

Break-even Point

The production level at which total revenues equal total expenses, resulting in no profit or loss.

Unit Contribution Margin

Unit contribution margin refers to the difference between the selling price per unit and the variable cost per unit, highlighting the profitability of individual items.