Peddlin' Pete's Cycles Sells Its Entry-Level Bicycles for $400 Each

question 120

Multiple Choice

Peddlin' Pete's Cycles sells its entry-level bicycles for $400 each.Its variable cost is $250 per bicycle.Fixed costs are $35,000 per month for volumes up to 1,200 bicycles.Above 1,200 bicycles,monthly fixed costs are $55,000.What is the budgeted operating income at a level of 1,300 bicycles per month?

• A)$195,000
• B)$465,000
• C)$140,000
• D)$160,000

---

Definitions:

Differential Reinforcement

A behavioral technique that reinforces specific behaviors while extinguishing undesirable behaviors through rewards or punishment.

Ethnic Identity

An individual's sense of belonging to a particular ethnic group, including aspects of culture, heritage, and traditions.

African-American

A racial or ethnic group in the United States with ancestry from any of the black racial groups of Africa.

Gender Schema

A cognitive framework that organizes information relevant to gender, influencing how individuals perceive and interact with their social world.