Walton Company Manufactures a Product with the Following Costs Per

question 2

Multiple Choice

Walton Company manufactures a product with the following costs per unit at the expected production level of 84,000 units: The company has the capacity to produce 90,000 units. The product regularly sells for £120. A wholesaler has offered to pay £110 a unit for 7,500 units.
If the special order is accepted, the effect on operating income would be a

• A) £75,000 decrease.
• B) £429,000 increase.
• C) £495,000 increase.
• D) £249,000 increase.

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Definitions:

Observational Learning

Observational Learning is a learning process through which individuals acquire new behaviors, skills, or attitudes by watching and modeling others.

Vicarious Reinforcement

The process through which individuals learn new behaviors or attitudes by observing the consequences of those behaviors for others, without experiencing them directly.

Mediated Reinforcement

A reinforcement process where the ability to obtain a primary reinforcer is dependent on the presence or action of a secondary reinforcer.

Observational Learning

A learning process through which behaviors are acquired by watching and imitating others.