mat 540 quiz

Question 1

Fixed cost is the difference between total cost and total variable cost. Answer

Selected Answer: True
Correct Answer: True

Question 2

In general, an increase in price increases the break even point if all costs are held constant. Answer

Selected Answer: False
Correct Answer: False

Question 3

Parameters are known, constant values that are usually coefficients of variables in equations.
Answer

Selected Answer: True
Correct Answer: True

Question 4

If variable costs increase, but price and fixed costs are held constant, the break even point will decrease. Answer

Selected Answer: False
Correct Answer: False

Question 5

If events A and B are independent, then P(A|B) = P(B|A). Answer

Selected Answer: False
Correct Answer: False

Question 6

A binomial probability distribution indicates the probability of r successes in n trials. Answer

Selected Answer: True
Correct Answer: True

Question 7

The events in an experiment are mutually exclusive if only one can occur at a time.
Answer

Selected Answer: True
Correct Answer: True

Question 8

The purpose of break-even analysis is to determine the number of units of a product to sell that will
Answer

Selected Answer: result in zero profit
Correct Answer: result in zero profit

Question 9

EKA manufacturing company produces Part # 2206 for the aerospace industry. Each unit of part # 2206 is sold for $15. The unit production cost of part # 2206 is $3. The fixed monthly cost of operating the production facility is $3000. How many units of part # 2206 have to be sold in a month to break-even?
Answer

Selected Answer: 250
Correct Answer: 250

Question 10

A bed and breakfast breaks even every month if they