I believe in father christmas
Answer:
A) decrease the degree of operating leverage
Explanation:
The contribution margin is
sales - variable:
(sales + 2) - (variable + 2) = sales - variable
no change
so B is FALSE
as the contribution margin ratio is:
(sales - variable ) / sales
this increase will impact the contribution margin ratio.
(sales + 2 - (variable +2))/ (sales + 2)
(sales - variable) / (sales + 2)
the CMR will decrease.
so D is FALSE
the break-even on sales will increase as the CMR decreases
more units are needed to fullfil the fixed cost
so C is FALSE
A) decrease the degree of operating leverage
ΔEBIT / Δrevenue
sales increase and the variable cost increases
a change in the sales revenue will not be as efficient as it was before the degree of leverage will decrease.
Answer:
A) It states a response followed by a reward is more likely to recur in the future.
Explanation:
E.L. Thorndike stated in 1898 that the Law of Effect in psychology is a behavioural term used to describe the attitude of humans towards positive responses. The Law of Effect states that the responses that produce a satisfying effect to a particular situation become more likely to occur again in that situation and responses that produce a discomforting effect become less likely to occur again in that situation. This thus explains the situation when man's senses are programmed to positivity especially when it involves satisfaction. It also means that when a positive thing occurs, there is a strong possibility that it will occur again.
Answer: Market Penetration Pricing.
Explanation:
MPP, Market Penetration Pricing is a where a company uses a strategy to attract customers to their product. Which also means lowing the price for customers to buy their products.
When lowing a price: This strategy is used to attract customers, they buy their product - then if they like it they will keep buying it even if the price is raised. This is a common strategy for tons of company brands.
