A Company Has Three Products (X, Y, and Z) That

question 12

Multiple Choice

A company has three products (X, Y, and Z) that it sells, packs, and ships to its customers. Because the products have different sizes they also have different packing and shipping costs so we will use a new measure-a packing/shipping unit. Because Product Y is the smallest of the three products, we will assign it a value of 1 packing/shipping unit. Product X is twice as big as Product Y and Product Z is four times as big as Product Y. On a monthly basis, this company sells an average of 1,500 units of Product X, 800 units of Product Y, and 60 units of Product Z. If the company spends on average of $3,720 each month on total packing/shipping costs, what amount should it allocate to Product Z per month (to the nearest dollar amount) ?

• A) $101
• B) $169
• C) $221
• D) $498
• E) $736

---

Definitions:

Successive Approximations

Successive approximations are a method used in behavior therapy where closer and closer steps to a desired behavior are rewarded until the target behavior is achieved.

Skinner Box

A soundproof chamber with a device for delivering food to an animal subject; used in operant conditioning experiments.

Generalization

The process of applying the conclusions drawn from specific instances to broader contexts or situations.

Operant Conditioning

A way of changing the force of a behavior using rewards or penalties as influencing factors.