Leo Is a Welfare Recipient Who Qualifies for Two Needs-Tested

question 46

Multiple Choice

Leo is a welfare recipient who qualifies for two needs-tested cash benefits.If he does not earn any income,he receives $225 from each benefit.For each dollar he earns,each benefit is reduced by 75 cents until the benefit equals zero.
-Refer to the above information.In the absence of earnings,Leo will receive __________ in benefits.

• A) $225
• B) $450
• C) $400
• D) $200
• E) $337

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Definitions:

Break-even Volume

The quantity of products or services a business needs to sell to cover its costs, without making a profit or loss.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Break-even Point

The financial stage where total costs and total revenues are equal, meaning no net loss or gain has been achieved, often considered a minimum success point for a business venture.