Use the Information Below to Answer the Following Questions

question 39

Multiple Choice

Use the information below to answer the following questions.
Travel Made Easy Ltd provides three services: International travel, Interstate travel, and Holiday Packages. The results for the year were as follows: The fixed costs have been shared equally between the three functions.
-Refer to the table above. Management is contemplating closing the Holiday Packages service; this would involve a cost saving of $40,000 per annum, namely the variable costs. The fixed costs are not expected to change. The best advice to management is:

• A) do not close the service, because profit would decrease by $90,000.
• B) close the service, and the business would make a profit of $110,000.
• C) close the service and save $40,000.
• D) do not close the service, because profit would decrease by $60,000.

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Definitions:

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior.

Environmental Control

The practice of managing and manipulating the conditions of a local environment, including temperature, humidity, and air quality.

Positive Reinforcement

A technique in behavior management that increases the likelihood of a behavior by associating it with positive outcomes or rewards.

Expert Power

The influence a person holds over others due to their skills or knowledge in a specific domain.