Forever Quilting Makes Quilting Kits Priced at $120

question 172

Multiple Choice

Forever Quilting makes quilting kits priced at $120. The costs of the materials that go into each kit total $45. It costs $5 in labor to assemble a kit. The company has monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising, and $4,500 for the monthly salary of its owner. Forever Quilting's unit variable cost for its kits is

• A) $5.
• B) $45.
• C) $50.
• D) $120.
• E) $170.

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Definitions:

CS-US Pairings

A term from classical conditioning theory referring to the repeated association of a conditioned stimulus (CS) with an unconditioned stimulus (US).

Magnitude

The size, extent, or dimensions of something, often used to describe the intensity or severity of an entity or event.

Response

A reaction or answer provided after receiving stimuli or information.

Dishabituation

An increase in responsiveness when something novel is presented, following a series of presentations of something familiar.