Krepps Corporation Produces a Single Product

question 211

Multiple Choice

Krepps Corporation produces a single product. Last year, Krepps manufactured 20,000 units and sold 15,000 units. Production costs for the year were as follows:
Sales totaled $825,000 for the year, variable selling and administrative expenses totaled $108,000, and fixed selling and administrative expenses totaled $165,000. There was no beginning inventory. Assume that direct labor is a variable cost.
-The contribution margin per unit was:

• A) $23.80 per unit
• B) $31.00 per unit
• C) $25.60 per unit
• D) $19.00 per unit

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Definitions:

Expectancy Theory

A motivational theory suggesting that individuals are motivated to act in certain ways based on the expectation that their actions will lead to desired outcomes.

Instrumentality

Is a person’s belief that various outcomes will occur as a result of task performance.

Organisational Behaviour Modification

A systematic approach to changing behavior in an organization through the application of learning theories to improve performance and satisfaction among employees.

Operant Conditioning

Is the control of behaviour by manipulating its consequences.