Nestle Company Paid $130,000 for a Machine Used to Mill

question 139

Multiple Choice

Nestle Company paid $130,000 for a machine used to mill oats.The annual contribution margin from oat sales is $60,000.The machine could be sold for $80,000.The opportunity cost of producing wheat flour is _____.

• A)$130,000
• B)$80,000
• C)$60,000
• D)$20,000

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Definitions:

Contingent Reinforcement

A method of behavior modification that delivers rewards or consequences contingent on a desired behavior.

Desirable Behaviour

A behavioral expectation within an organizational or social setting considered beneficial for its success and harmony.

Rewards

Incentives or benefits provided to individuals or groups as recognition for their achievements, effort, or behavior, aimed at motivating continued performance.

Merit Pay System

A compensation strategy that rewards employees based on their job performance, typically involving evaluations and performance metrics to determine pay increases.