Answer the Following Questions Using the Information Below

question 93

Multiple Choice

Answer the following questions using the information below:
Captain Carl's Seascapes produces sea pictures for sale through catalogs. The company has two workstations, photo production and framing. The photo production station is limited by the speed of operating the photo development machine. Framing is limited by the speed of the employees. Framing normally waits for work from photo production. Each department works an eight-hour day. If Captain Carl's Seascapes adds an earlier half shift so that photo production begins work four hours earlier than framing each day, the two departments generally finish their work at about the same time. Not only does this eliminate the bottleneck, but it also increases finished units produced each day by 200 units. All units produced can be sold. The cost of operating the photo production department four more hours each day is $1,250. The contribution margin of the finished products is $10 each.
-What is the change in the daily contribution margin if the change is made?

• A) $250
• B) $750
• C) $2,000
• D) $800

---

Definitions:

Aquarium Light

A specialized form of lighting designed to simulate natural light and promote the health and behavior of aquatic plants and animals in aquariums.

Conditioned Stimulus

Within classical conditioning, an initially neutral stimulus becomes linked with an unconditioned stimulus and ultimately elicits a conditioned response.

Neutral Stimulus

In conditioning, a stimulus that initially elicits no specific response other than focusing attention, which can eventually elicit a conditioned response when paired with an unconditioned stimulus.

Unconditioned Response

A natural, unlearned reaction to an unconditioned stimulus, part of classical conditioning theory.