The Following Information Is Provided for Southall Company What Is This Company's Contribution Margin?
A) $30,000
B) $17,500

question 106

Multiple Choice

The following information is provided for Southall Company: $\begin{array}{|l|r|}\hline \text { Sales revenue } & \$ 125,000 \\\hline \text { Variable manufacturing costs } & 42,500 \\\hline \text { Fixed manufacturing costs } & 37,500 \\\hline \text { Variable selling and administrative costs } & 15,000 \\\hline \text { Fixed selling and administrative costs } & 12,500\\\hline\end{array}$ What is this company's contribution margin?

• A) $30,000
• B) $17,500
• C) $45,000
• D) $67,500

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Definitions:

Response Strengthened

This term describes the process by which a behavior becomes more likely to occur as a result of reinforcement.

Negative Reinforcement

A behavioral principle where the removal of an unpleasant stimulus following a desired behavior increases the likelihood of the behavior occurring again.

Positive Reinforcement

A method of strengthening desired behaviors by presenting a desirable stimulus after the behavior occurs.

Probability

A measure or estimation of how likely it is that an event will occur, expressed as a number between 0 and 1, where 1 denotes certainty.