Figure 9-6
the Following Information Relates to a Product Produced

question 19

Multiple Choice

Figure 9-6
The following information relates to a product produced by Creamer Company: $\begin{array}{lr}\text { Direct materials } & £ 24 \\\text { Direct labour } & 15 \\\text { Variable overhead } & 30 \\\text { Fixed overhead } & {18} \\\text { Unit cost } & £87\end{array}$ Fixed selling costs are £500,000 per year, and variable selling costs are £12 per unit sold. Although production capacity is 600,000 units per year, the company expects to produce only 400,000 units next year. The product normally sells for £120 each. A customer has offered to buy 60,000 units for £90 each.
-Refer to Figure 9-6. The incremental cost per unit associated with the special order is

• A)£84.
• B)£81.
• C)£69.
• D)£64.

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Definitions:

Behavior Modification

The application of proven behavior modification methods to enhance behavior patterns and substitute negative behaviors with more positive ones.

Behavior Modification

A treatment approach, based on the principles of operant conditioning, that replaces undesirable behaviors with more desirable ones through positive or negative reinforcement.

Smoking Habit

The regular and habitual inhalation of smoke from burning tobacco products.

Humanistic Therapy

A therapeutic approach focusing on a person's individual nature, emphasizing personal growth and self-actualization.