The New Governor Hires You to Devise a Plan to Stop

question 60

Multiple Choice

The new governor hires you to devise a plan to stop bullying in the schools.Based on the principle of insufficient punishment, what might be a good way to punish bullies?

• A)After the first offense, dismiss them from school for the day.
• B)A "three strikes, you're out" policy in which the first two incidents go unpunished, but the third leads to expulsion and being placed in a juvenile detention center.
• C)Physically punish them by letting teachers slap them with yardsticks.
• D)Tell teachers to give a mild punishment that barely gets the bully to stop the behavior and to be consistent with this mild punishment.

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Definitions:

Unit Contribution Margin

The difference between the selling price per unit and the variable costs per unit, representing how much each unit sold contributes to covering fixed costs and generating profit.

Break-even Sales

Break-even Sales represent the amount of revenue needed to cover all fixed and variable costs, at which point a business does not make a profit or incur a loss.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, determined by the proportion of fixed versus variable costs a company has.

Operating Income

Earnings from a company’s core business operations, excluding deductions for interest and taxes.