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An example of a company that I could start is a travel advisory business. The best business structure that would make the most sense is an S corporation. This is because it provides protection from personal liability. It will also allow me to report my share of loss and profits of the company in my tax filings.
$7.8
Explanation:
Variable costs = $504,000
Fixed costs = $392,000
Number of units produced = 84,000
Shipping charges = $4,500
Therefore, the variable cost per unit is calculated as follows:
= Variable costs ÷ Number of units produced
= $504,000 ÷ 84,000
= $6 per unit
Incremental fixed cost per unit (For 2,500):
= Shipping cost ÷ 2,500
= $4,500 ÷ 2,500
= $1.8 per unit
Therefore, the unit sales price will be the sum total of variable cost per unit and incremental fixed cost per unit for the shipping charges.
BEP (in sales price per unit):
= Variable cost per unit + incremental fixed cost per unit
= $6 + $1.8
= $7.8
Using the Hypergeometric distribution principle, the probability of X = 3 in the function is 0.4396
Defining an hypergeometric distribution function :

The parameters given :
- N = 15
- r = 4
- X = 3
- n = 10

Using Combination :
Recall : nCr = n! ÷ (n-r)!r!
Using a calculator :

Therefore, the probability of X = 3 in the hypergeometric function is 0.4396 (rounded to 4 decimal places).
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