36. When examining the output from regression analysis, the goodness of fit meas

Question

36. When examining the output from regression analysis, the goodness of fit measure is labeled ________ by most computer programs.
A) X coefficient
B) R2
C) constant
D) standard error of estimate

22. Green Company has total variable costs of 75% of total revenues and fixed costs of $10 million per year. What is the break-even point expressed in total revenue dollars?(show work )
A) $10 million
B) $12.5 million
C) $40 million
D) $100 million

20. Smithsonian Company sells chairs at $60 per chair. The variable costs are $30 per chair. Total fixed costs for the period are $150,000. The contribution margin ratio is ________.(show work)
A) 22.5%
B) 37.5%
C) 50.0%
D) 62.5%

Explanation / Answer

Please please please mark the answer as helpful for explanation and correct solutions, thanks!!

Contribution Margin ratio = 1 - Variable Cost ratio

= 1 - 75%

= 25%

break-even point = Fixed Cost / Contribution Margin ratio

= $ 10 Million / 0.25

= $ 40 Million

Hence the correct answer is C) $ 40 Million

Contribution = selling price - variable cost = 60 - 30 = 30

Contribution margin ratio = contribution/sales * 100

= 30 / 60*100 = 50%

Right answer option c

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