The Cellar Door Currently Sells 9,620 Units a Month for Total

question 53

Multiple Choice

The Cellar Door currently sells 9,620 units a month for total monthly sales of $316,000.The company is considering replacing its current cash only credit policy with a net 30 policy.The variable cost per unit is $15 and the monthly interest rate is 1.5 percent.What is the switch break-even level of sales?

• A)9,711 units
• B)9,779 units
• C)9,814 units
• D)9,957 units
• E)9,889 units

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Definitions:

Variable-ratio

A schedule of reinforcement where a response is reinforced after an unpredictable number of responses. This schedule creates a high steady rate of responding.

Fixed-ratio

A schedule of reinforcement where a response is only reinforced after a specific number of responses, common in behaviorist psychology.

Fixed-interval

A schedule of reinforcement where the first response is rewarded only after a specified amount of time has elapsed.

Negative Reinforcer

A stimulus whose removal or avoidance following a behavior increases the likelihood of that behavior being repeated in the future.