A Company Expects Its Three Departments to Yield the Following

question 51

Essay

A company expects its three departments to yield the following income for next year:
$\begin{array}{lrrr} & \text { Dept. O } & \text { Dept. K } & \text { Dept. W } \\\text { Sales }& \$ 92,000 & \$ 15,000 & \$ 87,000 \\\text { Expenses } \\\text { Avoidable } & 73,000 & 1,000 & 36,000 \\\text { Unavoidable } & 2,000 & 8,000 & 37,000 \\\hline \text { Total expenses } & 75,000 & 9,000 & 73,000 \\\hline \text { Net income(loss) } & \underline {\$ 17,000} & \underline {\$ 6,000} & \underline {\$ 14,000}\end{array}$ Required: Compute the following independent calculations:
a.The effect on total company income if Dept.O is eliminated.
b.The effect on total company income if Dept.K is eliminated.
c.The effect on total company income if Dept.W is eliminated.

---

Definitions:

Mental Processes

Internal cognitive activities that include thinking, perceiving, problem-solving, and information processing.

Radical Behaviorism

A philosophy of behavior analysis that emphasizes the study of observable behavior along with environmental and physiological influences.

Stimuli

External or internal events or occurrences that elicit responses from an organism or a system.

Mental Processes

The operations of the mind that underlie thinking, feeling, perceiving, and remembering.