If the Target Profit Is $60 000 for an Annual

question 9

Multiple Choice

If the target profit is $60 000 for an annual volume of 480 units, the total annual fixed costs are $168 000 and the total variable cost per unit is $450, then what is the mark-up percentage on total variable cost?

• A) 15.6%
• B) 13.5%
• C) 105.6%
• D) 115.6%

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Definitions:

Permutation Test

A non-parametric statistical test that assesses the significance of the difference between groups by rearranging the data points among the groups many times and calculating the differences for each rearrangement.

Null Hypothesis

A statement suggesting that there is no significant difference or effect, and any observed difference is due to chance.

Identical Populations

Populations in statistical studies that have exactly the same characteristics, distributions, and parameters.

Permutation Resamples

A statistical technique for obtaining null distributions by calculating all possible values of a test statistic under rearrangements of the observed data.