Answer the Following Questions Using the Information Below:
Rockhampton Manufacturing

question 16

Multiple Choice

Answer the following questions using the information below:
Rockhampton Manufacturing is approached by a Brazilian customer to fulfil a one-time-only special order for a product similar to one offered to domestic customers. Rockhampton Manufacturing has a policy of adding a 10% mark-up to full costs and currently has excess capacity. The following per unit data apply for sales to regular customers:
$\begin{array}{lr}\text {Variable costs:}\\\text { Direct materials } & \$ 30 \\\text { Direct labour } & 10 \\\text { Manufacturing overhead } & 15 \\\text { Marketing costs } & 5\\\text { Fixed costs: }\\\quad \text { Manufacturing overhead } & 100 \\\quad \text { Marketing costs } & \underline{20} \\\text { Total costs } & 180 \\\text { Mark-up }(10 \%) & 18 \\\text { Estimated selling price } & \underline{ \$ 198}\end{array}$

-What is the full cost of the product per unit?

• A)$66
• B)$180
• C)$60
• D)$198

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Definitions:

Variable-ratio Schedule

A schedule of reinforcement where a response is reinforced after an unpredictable number of responses, making it a powerful method for maintaining strong and steady response rates.

Variable-interval Schedule

A reinforcement strategy in operant conditioning where a response is rewarded after an unpredictable amount of time has passed.

Fixed-ratio

A type of partial reinforcement where a response is rewarded only after a specified number of responses, commonly used in behavior modification programs.

Fixed-interval

A schedule of reinforcement where the first response is rewarded only after a specified amount of time.