Express Bus Company Operates a Bus Route That Takes Passengers

question 47

Multiple Choice

Express Bus Company operates a bus route that takes passengers from Cleveland to Chicago every day.Assume the bus tickets sell for $50 per rider; the bus line's variable costs are $35 per rider; and its fixed costs are $75,000 each month.What is the contribution margin per rider?

• A)$15.00
• B)$ 0.30
• C)$35.00
• D)$ 3.33

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Definitions:

Two-Factor Theory

A psychological theory that proposes emotions are based on physiological arousal and cognitive labeling of that arousal.

Contingency Theory

Contingency Theory is a behavioral theory that suggests the effectiveness of leadership or decision-making strategies is contingent upon the context and situation.

Maximization Theory

A theory suggesting that individuals seek to maximize expected utility in decision-making scenarios, often considered in economics and psychology.

Guthrie

Edwin Ray Guthrie was a psychologist known for his associationist theories of learning, emphasizing the contiguity principle.