\" You should work INDIVIDUALLY on this csam 3) You are allowed to use caleulato

Question

" You should work INDIVIDUALLY on this csam 3) You are allowed to use caleulator 4) Use your exam sheet for 12 What is the name given to the tendency to think we are bee B3 Overestimation C) Overplacement 2) If the value of some parameters of a model are u A) random n, then the mode B) probabilistic C) deterministic D) schematic E) mathematical 3) Which of the following variables is considered to be quantitative? A)gender 3) make of automobile C) customer satisfaction D) soft drink size in ounce E) none of the above 4) The ABC Corporation is considering introducing a new product, which will require buying v equipment for a monthly payment of $8,000. Each unit produced can be sold for $12.00. AB variable cost of $10.00 per unit. How many units ABC should sell to break even? A) 100,000 B) 10,000 C) 5,000 D) 4,000 E) 16,000 5) The break-even volume (BEP) occurs at the point where: A) total profit = total fixed cost B) total profit total fixed cost +total variable cost C) total profit zero D) total profit = maximum possible profit E) total profit = minimum possible profit

Explanation / Answer

Question 1 and 2 is not clear.

However, i am answering rest other 3 questions.

Question 3

The question asks to identify the quantative variable. Gender, make of an automobile and customer satisfaction can't be measured in numbers. Hence, it's not quantative. Even ounce also can't be used for measuring the soft drink. But there's a scientific measurement for ounce to ml. Therefore, we can take a stand that option d as an quantative factor.

Question 4

Given, Sales per unit = $12, Variable cost= $10

Contribution = Sales- Variable cost = $2

Equipment cost = $8,000, i.e Fixed cost.

We need to calculate the breakeven sales. Break even sales is where the contribution equals Fixed cost.

We have formula to calculate no.of breakeven units.

Break even units= ( Fixed cost/ contribution per unit)

= ($8000/$2) = 4,000 units ( Option D)

Question 5

The break even point occurs at a point where total profit equals zero ( Option C)

It's quite simple and know logic that if contribution equals Fixed cost, then profit will be zero.

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