Figure 7-3

question 99

Multiple Choice

Figure 7-3. Hamilton Company manufactures engines.Hamilton produces all the parts necessary for its engines except for one electronic component,which is purchased from two local suppliers: Traynor Inc.and Bello Company.Both suppliers are reliable and rarely deliver late; however,Traynor sells the component for $10.00 per unit and Bello sells the same component for $8.95.Hamilton purchases 70 percent of its components from Bello,because of the lower price.The total annual demand is 75,000 units.
Refer to Figure 7-3.Calculate the total activity cost per component associated with using Traynor Inc.,as the supplier.

• A)$15.75
• B)$10.00
• C)$19.38
• D)$20.00
• E)$22.80

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Definitions:

Classical Conditioning

A teaching mechanism involving the link between a stimulus found in the environment and one that naturally exists.

Positive Reinforcer

A stimulus which, when presented after a behavior, increases the likelihood of that behavior being repeated.

Conditioned Stimulus

A conditioned stimulus is a previously neutral stimulus that, after becoming associated with an unconditioned stimulus, elicits a conditioned response.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers an unconditioned response without prior learning.