This

**preview**has**blurred**sections. Sign up to view the full version! View Full DocumentQuestion 1
1.
If variable costs increase, but price and fixed costs are held constant, the break even point will
decrease.
Answer
True
False
2 points
Question 2
1.
Fixed cost is the difference between total cost and total variable cost.
Answer
True
False
2 points
Question 3
1.
Probabilistic techniques assume that no uncertainty exists in model parameters.
Answer
True
False
2 points
Question 4
1.
In general, an increase in price increases the break even point if all costs are held constant.
Answer
True
False
2 points
Question 5
1.
A binomial probability distribution indicates the probability of r successes in n trials.
Answer
True
False
2 points
Question 6
1.

If events A and B are independent, then P(A|B) = P(B|A).
Answer
True
False
2 points
Question 7
1.
P(A | B) is the probability of event A, if we already know that event B has occurred.
Answer
True
False
2 points
Question 8
1.
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

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