Which of the Following Individuals Is Likely to Be at the Highest

question 137

Multiple Choice

Which of the following individuals is likely to be at the highest level of sympathetic arousal?

• A) Melissa, who is daydreaming and staring out the window
• B) Keith, who is concentrating on a lecturer and taking careful notes
• C) Professor Trong, who is lecturing
• D) Bill, who is anticipating an exam he will take within the hour and for which he is unprepared

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Definitions:

Fixed Selling Expense

Costs associated with the selling process that do not vary with the level of sales, such as salaries of sales personnel and rent for sales space.

Variable Administrative Expense

Indirect costs that change in proportion with the level of a company’s production or sales activities.

Fixed Administrative Expense

Expenses that do not change with the level of production or sales over a certain period, related to the administration of a business.

Contribution Format

An income statement format that separates fixed and variable costs to show the contribution margin.