Use the Information Below to Answer the Following Questions -Refer to the Table Above

question 39

Multiple Choice

Use the information below to answer the following questions.
Sales Extraordinaire sells one particular photo frame. It estimates that it can sell as many frames as it produces. $\begin{array}{lr}\text { Sales price per unit } & \$ 6.00 \\\text { Variable cost per unit } & \$ 3.00 \\\text { Fixed costs per annum } & \$ 9,000\end{array}$
-Refer to the table above. Increasing the sales price to $8.00 and having a sales volume of 3,000 photo frames would result in:

• A)a profit of $6,000.
• B)a loss of $1,000.
• C)breaking even.
• D)a profit of $1,000.

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Definitions:

Extinction

In behavioral psychology, the process through which a conditioned response decreases or disappears as a result of repeated exposure without reinforcement.

Reinforcement

In psychology, a process by which a certain stimulus or action encourages a particular behaviour to occur again.

Punishment

The imposition of a penalty as retribution for an offense or undesirable behavior.

Extinction

In behavioral psychology, refers to the gradual weakening and disappearance of a conditioned response when it is no longer reinforced.