Maddie Noticed That Many Students on Campus Had T-Shirts and Sweatshirts

question 42

Multiple Choice

Maddie noticed that many students on campus had t-shirts and sweatshirts with Greek organization letters or club names on them. Recognizing that there was a huge market for this attire, Maddie rented a store front and a silk screening machine to get into the t-shirt business. Maddie's rent is $1,000 a month, including utilities. The silk screen machine leases for $300 a month. Maddie can buy blank t-shirts for $6 each and sweatshirts for $10 each. Maddie calculated the cost of materials for the silk screening at $2 per unit. For pricing decisions, Maddie should consider the $2 cost of silk screening material as a:

• A) variable cost.
• B) fixed cost.
• C) deductible expense.
• D) marginal expense.

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Definitions:

Positive Reinforcement

A behavioral strategy that involves rewarding a behavior to increase the likelihood of that behavior being repeated.

Observational Learning

The process of acquiring new behaviors or knowledge by watching and imitating others.

Classical Conditioning

Modifying behavior by pairing a conditioned stimulus with an unconditioned stimulus to elicit an unconditioned response.

Respondent Conditioning

A form of learning in which a behavioral response is elicited by a previously neutral stimulus that has become associated with a meaningful stimulus.