A Florist Produces Table Settings for Weddings

question 108

Essay

A florist produces table settings for weddings.Based on an annual volume of 10,000 units it incurs $100,000 in fixed manufacturing costs.Variable costs per unit are $16 for direct materials, $3 for direct manufacturing labour, and $14 for variable factory overhead.Another company has offered to supply empty baskets for the settings for $8, with a minimum annual order of 5,000 units.If the florist accepts the offer, it will be able to reduce variable labour and overhead costs by 50 percent.The materials for the empty baskets will cost $4 if the florist assembles them.Required:
a.Determine if they should make or assemble the empty baskets.
b.Should they make or assemble the empty baskets if they could rent the space that the basket assembly requires for $16,000 per year to another company?

Understand the application of conditioning principles in therapeutic contexts and behavior modification.

Analyze the impact of classical conditioning on human and animal behavior in various scenarios.

Recognize the role of classical conditioning in advertising and aversion therapy.

Outline the basic mechanisms involved in higher-order conditioning.

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Definitions:

Somatic Nervous System

A part of the peripheral nervous system that handles voluntary control of body movements through the control of skeletal muscles.

Knee-Jerk Reflex

The knee-jerk reflex is a sudden kicking movement of the lower leg in response to a sharp tap on the patellar tendon.

Interneurons

A type of neuron that transmits impulses between other neurons, especially as part of a reflex arc.

Sympathetic Nervous System

A part of the autonomic nervous system that prepares the body for action by increasing heart rate, blood pressure, and energy production.