The Firm's Fixed Costs Are $60 000, Variable Cost Per

question 56

Multiple Choice

The firm's fixed costs are $60 000, variable cost per unit is $15 and selling price per unit is $20. The contribution margin percentage is

• A) 2.5%.
• B) 25%.
• C) 33%.
• D) 400%.

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Definitions:

Test Power

The probability that a statistical test will correctly reject the null hypothesis when it is false, indicating a test's effectiveness.

False Null Hypothesis

Incorrect rejection of a true null hypothesis, often referred to as a Type I error in statistical hypothesis testing.

Confidence Interval

An encompassing array of values, from sample data statistics, perceived to contain the unknown value of a population parameter.

Population Mean

The average of all the values in a population, representing the central tendency.