Carlton Products Has Three Product Lines: A, B, and C

question 10

Multiple Choice

Carlton Products has three product lines: A, B, and C.
Management is considering dropping product line B. If it is discontinued, all of its fixed costs can be avoided. The discontinuation of product line B would:

• A) decrease net income $10,000.
• B) increase net income $140,000.
• C) decrease net income $130,000.
• D) increase net income $10,000.

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Definitions:

Learned Helplessness

A condition in which a person suffers from a sense of powerlessness, arising from a traumatic event or persistent failure to succeed, leading to the belief that one's actions have no effect on outcomes.

Aversive Stimulus

A stimulus that is unpleasant or painful, which an organism seeks to avoid or escape.

Positive Reinforcement

A technique used in behavioral psychology to increase the likelihood of a desired behavior by following it with the addition of a reinforcing stimulus.

Punishment

A consequence that decreases the likelihood of a behavior being repeated, often used as a form of behavioral control.