Gordon Company Produces a Single Product That Sells for $10

question 77

Multiple Choice

Gordon Company produces a single product that sells for $10 per unit. Last year there were no beginning inventories, 100,000 units were produced, and 80,000 units were sold. The company has the following cost structure:
-Net operating income under variable costing would be:

• A)$114,000
• B)$210,000
• C)$234,000
• D)$330,000

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Definitions:

Classical Conditioning

Learning occurs through consistently pairing two stimuli together; a reaction first stimulated by the second stimulus eventually is stimulated by only the first stimulus.

Instinctive Behavior

Actions or reactions that are performed without conscious thought, driven by genetic programming.

Involuntary Behavior

Actions that occur without conscious control, often reflexive or automatic in nature.

Conditioned Stimulus

In classical conditioning, a previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response.