Paul and Michael Sell Magazine Subscriptions by Telephone

question 121

Multiple Choice

Paul and Michael sell magazine subscriptions by telephone.Paul is paid $1.00 for every five calls he makes,while Michael is paid $1.00 for every subscription he sells,regardless of the number of calls he makes.Paul's telephoning is reinforced on a ________ schedule,whereas Michael's is reinforced on a ________ schedule.

• A) variable-ratio;fixed-ratio
• B) fixed-ratio;variable-ratio
• C) fixed-ratio;variable-interval
• D) fixed-interval;variable-ratio

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Definitions:

Total Contribution Margin

The difference between total sales revenue and total variable costs, measuring how much revenue covers fixed costs and profits.

CVP Graph

A visual representation of the Cost-Volume-Profit analysis that illustrates the relationships between costs, volume, and profit.

Total Fixed Expenses

Total fixed expenses refer to the sum of all costs that do not change with the level of production or sales over a certain period.

Total Variable Expenses

The sum of all costs that vary directly with the level of production or sales volume over a specific period.