Kurt Neal and Son Is Considering a Project with a Discounted

question 30

Multiple Choice

Kurt Neal and Son is considering a project with a discounted payback just equal to the project's life.The projections include a sales price of $12,variable cost per unit of $8.50,and fixed costs of $5,500.The operating cash flow is $7,200.What is the break-even quantity?

• A)1,800 units
• B)2,480 units
• C)3,629 units
• D)3,750 units
• E)4,280 units

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Definitions:

Stimulus Substitution

A theory in classical conditioning suggesting that the conditioned stimulus acts as a substitute for the unconditioned stimulus, eliciting the same response.

Classical Conditioning

An educational mechanism where the consistent pairing of two stimuli occurs; the response which initially is drawn by the second stimulus, in time, is drawn by the first stimulus alone.

Conditioned Stimulus

A previously neutral stimulus that, after being repeatedly associated with an unconditioned stimulus, evokes a conditioned response.

Conditioned Fear

A learned response to a previously neutral stimulus that has become associated with a frightful event or situation.