Northlake, Inc

question 65

Multiple Choice

Northlake, Inc., uses the high-low method to analyze cost behavior. The company observed that at 20,000 machine hours of activity, total maintenance costs averaged $10.50 per hour. When activity jumped to 24,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $9.75. On the basis of this information, the company's fixed maintenance costs were:

• A) $24,000.
• B) $90,000.
• C) $210,000.
• D) $234,000.
• E) None of the other answers is correct.

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Definitions:

Positive Reinforcers

Stimuli that, when introduced after a behavior, increase the likelihood of that behavior being repeated.

Negative Reinforcers

Stimuli that, when removed after a response, increase the probability of that response occurring in the future.

Behavioral Psychologists

Professionals who study and analyze how human behavior is learned and influenced by the environment.

Permanent Change

Permanent change refers to alterations in a system or behavior that are enduring and not expected to return to their original state.