Reference: 12-11
the Millard Division's Operating Data for the Past

question 80

Multiple Choice

Reference: 12-11
The Millard Division's operating data for the past two years are provided below: $$\begin{array} { | l | l | l | } \hline & \text { Year 1 } & \text { Year 2 } \\\hline \text { Return on investment } & 12 \% & 36 \% \\\hline \text { Stockholders' equity } & \$ 800,000 & \$ 500,000 \\\hline \text { Net operating income } & ? & \$ 360,000 \\\hline \text { Turnover } & ? & 3 \\\hline \text { Margin } & ? & ? \\\hline \text { Sales } & 3,200,000 & ? \\\hline\end{array}$$ Millard Division's margin in Year 2 was 150% of the margin in Year 1.
-The net operating income for Year 1 was?

• A)$240,000.
• B)$768,000.
• C)$384,000.
• D)$256,000.

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Definitions:

OB Mod

Organizational Behavior Modification, a theory that focuses on influencing individual or group behaviors within an organization through a system of rewards and punishments.

Punishment

The imposition of a penalty as a response to an undesirable behavior or action, aimed at reducing or eliminating that behavior.

Operant Conditioning

is a learning process through which the strength of a behavior is modified by reinforcement or punishment.

Classical Conditioning

A learning process in psychology where an automatic conditioned response is paired with a specific stimulus, originally discovered by Ivan Pavlov.