[The Following Information Applies to the Questions Displayed Below

question 81

Multiple Choice

[The following information applies to the questions displayed below.]
Baskin Promotions,Inc.sells T-shirts decorated for a variety of concert performers.The company has developed the following budget for the coming year based on a sales forecast of 80,000 T-shirts:
Cost of goods sold and variable operating expenses vary directly with sales,and the income tax rate is 30% at all levels of operating income.
If the concert season is slow due to poor weather,Baskin estimates that sales could fall to as low as 60,000 T-shirts.
-In a flexible budget for sales of 60,000 T-shirts,how much would Baskin budget for operating expenses?

• A)$238,800
• B)$338,800
• C)$218,400
• D)$418,400

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Definitions:

μ

Symbol representing the mean of a population in statistics.

≠ Symbol

A mathematical symbol denoting inequality, specifically that two values are not equal.

Null Hypothesis

A statistical premise asserting the absence of a relationship or impact between variables, tested to determine if an observed association is likely due to chance.

Directional

Refers to hypotheses in research that predict not only the existence of a relationship between variables but the direction of that relationship as well.