Bouncy Bungee Rubber Band Company Is Trying to Determine Its

Multiple Choice

Bouncy Bungee Rubber Band Company is trying to determine its probability of incurring a loss.Its fixed costs are $2,760,000 per year, it sells its rubber bands for $3.75 per pack and the variable cost of these packs is $.75.They estimate they will sell 1,000,000 packs this year and they have a standard deviation of 40,000 units.(A normal distribution table - Table V - must accompany this problem) .

A) 3.22%
B) 6.71%
C) 5.48%
D) 2.87%