David's Gasoline Station Offers 4 Cents Off Per Litre If

question 92

Multiple Choice

David's gasoline station offers 4 cents off per litre if the customer pays in cash and does not use a credit card. Past evidence indicates that 40% of all customers pay in cash. During a one-hour period twenty-five customers buy gasoline at this station. What is the probability that no more than twenty pay in cash?

• A) 0.0
• B) 0.1
• C) 0.9
• D) 1.0

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Definitions:

Total Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, or insurance premiums.

Silk Flower Arrangements

Artificial flower displays made from silk and other materials, designed to replicate the appearance of natural flowers.

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced or sold.

Variable Cost

Costs that change in proportion to the level of production or sales, such as materials and labor directly involved in manufacturing.