A Company Is Considering Producing an Item That Can Be

question 2

Multiple Choice

A company is considering producing an item that can be sold for $37.50 per unit.If the fixed costs for setting up production are $225,000 and the variable cost per unit for the item is $35 then the breakeven volume for this item is

• A)6,000 units.
• B)6,429 units.
• C)72,500 units.
• D)90,000 units.

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Definitions:

Primary Reinforcer

An innately reinforcing stimulus, such as one that satisfies a biological need (e.g., food, water, shelter).

Variable-Ratio

A reinforcement schedule where a response is reinforced after an unpredictable number of responses, influencing rapid and consistent response rates.

Fixed-Ratio

A schedule of reinforcement where a response is reinforced only after a specified number of responses, commonly used in behavior modification programs.

Variable-Interval

A schedule of reinforcement where a response is rewarded after an unpredictable amount of time has passed, in operant conditioning.