A Large Hotel and Casino in Las Vegas Is Currently

question 51

Multiple Choice

A large hotel and casino in Las Vegas is currently under construction. There will be an Italian restaurant in the hotel that will serve pizza. Management is trying to decide whether to make the pizza themselves or buy it frozen and simply heat it to customer order. One major source of commercial-grade frozen pizza is Chun-Yee Corporation. If they make the pizza themselves a substantial amount of preparation equipment will be required, along with skilled personnel. Financial data is as shown below (variable costs are estimated based on an average pizza purchase) : $\begin{array}{|l|c|c|}\hline \text { Source } & \text { Fixed Cost/year } & \text { Variable Cost } \\\hline \text { Make in-house } & \$ 7,870 & \$ 3.20 \\\hline \text { Chun-Yee } & \$ 2,460 & \$ 4.50 \\\hline\end{array}$ At what volume is the company indifferent to either Chun-Yee or make in-house?

• A) Less than or equal to 2,000
• B) More than 2,000 but less than or equal to 4,000
• C) More than 4,000 but less than or equal to 6,000
• D) More than 6,000 but less than or equal to 8,000

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Definitions:

Immunosuppression

The reduction of the efficacy of the immune system's response, naturally or through medical intervention.

Conditioned Response

A conditioned reaction to a once neutral stimulus that has been paired with an unconditioned stimulus.

Acquisition

The initial stage of learning or conditioning in which a response is established or a skill is begun to be learned.

Contiguity

In psychology, contiguity refers to the closeness or proximity in time or space between two events or stimuli, often associated with classical conditioning.