Figure 12-3 Quinn Has Capacity to Make 950,000 Zippers Per Year, but \\
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question 59

Multiple Choice

Figure 12-3 $\begin{array}{ll}\text { Direct materials } & \$ 0.23 \\\text { Direct labor } & \$ 0.20 \\\text { Variable overhead } & \$ 0.95 \\\text { Fixed overhead } & \$ 1.32 \\\text { Total } & \$ 2.70\end{array}$ Quinn has capacity to make 950,000 zippers per year, but due to a soft market, only plans to produce and sell 620,000 zippers next year. LeatherStuff currently buys zippers from an outside supplier for $3.50 each (the same price that Style receives) .
-Refer to Figure 12-4. Assume that Style and LeatherStuff have agreed on a transfer price of $3.25. What is the total benefit for Style?

• A) $243,000
• B) $292,500
• C) $168,300
• D) $69,000
• E) $81,000

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Definitions:

Avoidance Responding

A behavior modification technique aimed at reducing unwanted responses by avoiding the triggers.

Negative Reinforcement

A behavior reinforcement strategy in which an undesirable or discomforting stimulus is removed after the display of a behavioral response.

Escape Responding

A behavior that is motivated by the desire to terminate an aversive stimulus, resulting in the avoidance or cessation of discomfort.

Scary Movies

Films designed to provoke fear, horror, or terror in their audience, often featuring suspenseful or supernatural elements.