Contemporary Corp

question 1

Multiple Choice

Contemporary Corp. sells a single product for $80. Variable costs are 40%% of the selling price, and the company has fixed costs that amount to $500,000. Current sales total 18,000 units. Each unit that Contemporary sells will:

• A)contribute to overall profitability by $20.
• B)contribute to overall profitability by $32.
• C)contribute to overall profitability by $48.
• D)contribute to overall profitability by $28.
• E)contribute to overall profitability by some other amount.

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Definitions:

Reward Reduction

A decrease in the magnitude or frequency of a rewarding stimulus following a behavior, which can affect the future likelihood of that behavior.

Environmental Stimuli

External factors or changes in the environment that can influence an individual's behavior or physiological responses.

Temper Tantrum

An emotional outburst, typically characterized by crying, screaming, defiance, and anger, common among toddlers as a way to express frustration or attempt to assert control.

Guthrie's Theory

A theory in psychology proposed by Edwin Guthrie suggesting that learning is a result of a simple association between a stimulus and a response, without the need for repetition or reinforcement.