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You have been asked to determine the probability that the contribution margin for a particular product line exceeds the fixed cost of $430. The total
You have been asked to determine the probability that the contribution margin for a particular product line exceeds the fixed cost of
$430.
The total number of units sold is a normally distributed random variable with a mean of
300
and a variance of
400
X ~
N(300,
400).
The selling price per unit is
$9.
The total number of units produced is a normally distributed random variable with a mean of
500
and a variance of
2500
Y ~
N(500,
2500).
The variable production cost is
$4
per unit. Production and sales have a positive correlation of
0.50.
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