Macaulay Company Has Three Product Lines-D, E, and F

question 32

Multiple Choice

Macaulay Company has three product lines-D, E, and F. The following information is available: Macaulay Company is thinking of dropping product line F because it is reporting an operating loss. Assume that $15,000 of total fixed costs could be eliminated by dropping F. What effect would this decision have on operating income?

• A)Operating income will increase by $25,000.
• B)Operating income will increase by $20,000.
• C)Operating income will decrease by $5,000.
• D)Operating income will decrease by $15,000.

Understand the concepts and application of reinforcement and punishment in behavior modification.

Identify and differentiate between various forms of learning (e.g., operant conditioning, observational learning, escape learning).

Explain the factors that make punishment effective or ineffective.

Recognize the role of cognitive processes in learning, beyond strict behaviorist explanations.

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Definitions:

Money Market Accounts

Savings accounts that typically offer higher interest rates, with the balance usually accessible through checks or electronic transfers.

Commercial Paper

An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts payable and inventories.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically for the financing of accounts receivable, inventories, and meeting short-term liabilities.