If Sales Volume Were to Decrease 15%, from 4,000 Units

question 73

Multiple Choice

$$\begin{array} { ll } \text { Selling price per unit } & \$ 100 \\\text { Variable expenses per unit } & \$ 40 \\\text { Fixed expenses per month } & \$ 60,000\end{array}$$ If sales volume were to decrease 15%, from 4,000 units per month to 3,400 units per month, operating income would:

• A)not change.
• B)decrease $24,000.
• C)decrease $36,000.
• D)decrease $40,000.

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Definitions:

Assembly Line Manager

A professional in charge of supervising the production process in an assembly line, ensuring efficiency and quality in the manufacturing process.

Reinforcement Schedule

A plan or strategy in behavioral psychology involving the timing and frequency of rewards that influence the rate and retention of learning.

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The act of watching and noting the actions or reactions of individuals or groups in order to gather data about specific, often psychological, phenomena.

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In the context of schedules of reinforcement in behaviorism, refers to a reinforcement schedule where responses are rewarded after a variable amount of time has passed.