Given the Following Random Number Ranges and the Following Random

question 82

Short Answer

Given the following random number ranges and the following random number sequence: 62, 13, 25, 40, 86, 93, determine the average demand for the following distribution of demand.
$$\begin{array} { | c | c | } \hline \text { Demand } & \begin{array} { c } \text { Random } \\\text { Number Ranges }\end{array} \\\hline 5 & 00 - 14 \\\hline 6 & 15 - 44 \\\hline 7 & 45 - 69 \\\hline 8 & 70 - 84 \\\hline 9 & 85 - 99 \\\hline\end{array}$$

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Definitions:

Fixed Costs

Regardless of how much is produced or sold, costs for rent, salaries, and insurance remain unchanged.

Variable Costs

Prices that adjust based on the quantity of products made or sold.

Pretax Income

Income earned by an entity before any taxes have been deducted.

Operating Leverage

The degree to which a firm or project can increase operating income by increasing revenue, reflecting the fixed versus variable cost structure.