Answer the Following Question(s)using the Information Below

question 175

Multiple Choice

Answer the following question(s) using the information below:
Greenlawn Ltd.has two divisions, Distribution and Production.The company's primary product is fertilizer.Each division's costs are provided below:
The Distribution Division has been operating at a capacity of 4,000,000 kilograms a week and usually purchases 2,000,000 kilograms from the Production Division and 2,000,000 kilograms from other suppliers at $0.45 per kilogram.
-Assume 100,000 kilograms are transferred from the Production Division to the Distribution Division for a transfer price of $0.40 per kilogram.The Distribution Division sells the 100,000 kilograms at a price of $0.55 each to customers.What is the company's operating income?

• A)$10,000
• B)$15,000
• C)$20,000
• D)$25,000
• E)$0

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Definitions:

Positive Reinforcement

A process in psychology where behaviors are increased or strengthened by providing a reward or positive outcome after the desired behavior is performed.

Negative Reinforcement

A psychological principle where the removal or avoidance of an unpleasant stimulus as a consequence of a behavior increases the likelihood of that behavior being repeated.

Positive Punishment

A behavior modification technique where an undesirable behavior results in a negative outcome to decrease the likelihood of the behavior reoccurring.

Negative Punishment

A behavior modification technique involving the removal of a desirable stimulus to decrease the likelihood of an unwanted behavior's recurrence.