Olson Company Has Three Departments

question 29

Essay

Olson Company has three departments.Data for the most recent year is presented below:
Olson Company is considering eliminating Dept.C because it is operating at a loss.
Required:
A)Compute the change in operating income if Olson Company eliminates Dept.C and does not replace it.
B)Compute the change in operating income if Olson Company eliminates Dept.C and doubles the sales of Dept.T without increasing fixed costs.

• A)Compute the change in operating income if Olson Company eliminates Dept.C and does not replace it.
• B)Compute the change in operating income if Olson Company eliminates Dept.C and doubles the sales of Dept.T without increasing fixed costs.

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Definitions:

Classical Conditioning

A type of learning in which, through repeated pairings, a neutral stimulus comes to evoke a conditioned response.

Associative Learning

The process by which an individual learns to connect or link two stimuli or a stimulus and a behavior, forming new associations.

Instrumental Learning

A learning process in which behavior is modified by the consequences it generates, often involving rewards or punishments to increase or decrease the behavior's occurrence.

Mere Repeated Exposure

The phenomenon by which people tend to develop a preference for things merely because they are familiar with them.