The Following Information Is Available for Yorkshire Consulting Company and Its

question 149

Essay

The following information is available for Yorkshire Consulting Company and its two offices: $\begin{array}{lll}&\text { Berea Office }&\text { North Royalton Office}\\\text { Net sales }&\$250,000&\$400,000\\\text { Fixed costs: Controllable }\text { by }\\\text { division manager } & 78,000 & 48,000 \\\text { Controllable by others } & 4,000 & 8,000 \\\text { Variable costs: } & &\\\text { Cost of }\\\text { merch andise sold } & 30,000 & 120,000 \\\text { Operating expenses } & 15,000 & 60,000\end{array}$ Unallocated costs were $52,000. Required:
a. Compute the contribution margin for the Berea Office.
b. Compute the contribution controllable by the manager of the North Royalton Office.
c. Compute the contribution by segment for the Berea Office.
d. Compute the net income for Yorkshire Consulting Company.

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Definitions:

Matching Law

When an animal has free access to two different schedules of reinforcement; its response is proportional to the level of reinforcement available on each schedule.

Behavioral Contrast

A phenomenon where the rate of response varies in accordance with a change in the reinforcement provided in an alternate situation.

Matching Law

A principle that states that the proportion of responses directed towards alternatives is equal to the proportion of reinforcements obtained from those alternatives.

Reinforcement

A process in behaviorism where a behavior becomes more likely to occur in the future due to the consequences that follow the behavior.