If Fixed Costs Are $450,000, the Unit Selling Price Is

question 153

Multiple Choice

If fixed costs are $450,000, the unit selling price is $75, and the unit variable costs are $50, what are the old and new break-even sales (units) if the unit selling price increases by $10?

• A) 6,000 units and 5,294 units
• B) 18,000 units and 6,000 units
• C) 18,000 units and 12,858 units
• D) 9,000 units and 15,000 units

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Definitions:

Watson

Psychologist John B. Watson, known as the father of behaviorism, emphasized the study of observable behavior.

Thorndike

An American psychologist known for his work on learning theory that led to the development of operant conditioning within behaviorism.

Operant Conditioning

A method of learning that occurs through reinforcements and punishments for behavior, influencing the likelihood of that behavior being repeated.

Higher-Order Conditioning

A form of learning in which a stimulus is first made meaningful through classical conditioning. Then, another stimulus is paired with the first, causing the second stimulus to elicit the conditioned response even in the absence of the first.