Assume That Phoenix Decides to Accept the Special Order at a Unit

question 58

Multiple Choice

Assume that Phoenix decides to accept the special order at a unit sales price that will add $400,000 per month to its operating income. The unit price of the special order will be:

• A) $85.
• B) $70.
• C) $55.
• D) Some other amount.

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Definitions:

Reinforcement Value

The degree to which a specific outcome or reward increases the likelihood of a behavior occurring again.

Motivation

The internal drive or process that stimulates an individual to act towards achieving a goal or fulfilling a need.

Drive Theory

A psychological theory suggesting that behavior is motivated by the desire to fulfill basic biological needs.

Incentive

A motivation or reason for doing something, often a reward or benefit that encourages specific behavior.