Expected Sales for Next Year for the Brady Division Are

question 14

Multiple Choice

Expected sales for next year for the Brady Division are 120,000 units.Drew Carey, the manager of the Brady Division, is under pressure to improve the performance of the Division.As he plans for next year, he has to decide whether to produce 120,000 units or 140,000 units.The Brady Division will have higher net income, if Drew Carey decides to

• A)produce 140,000 units if income is measured under absorption costing.
• B)produce 140,000 units if income is measured under variable costing.
• C)produce 120,000 units if income is measured under absorption costing.
• D)produce 120,000 units if income is measured under variable costing.

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Definitions:

Partial Reinforcement

A conditioning principle where only some of the responses made are followed by reinforcement, leading to more resistant behavior to extinction.

Unpredictable Number

A number whose value cannot be anticipated or determined due to its random or variable nature.

Variable-Ratio Schedule

In operant conditioning, a reinforcement schedule that reinforces a response after an unpredictable number of responses.

Intermittent Reinforcement

A learning process in which a response is rewarded only part of the time, leading to more resilient behaviors.