Discount Furniture Has Seen Sales Decline in a Highly Competitive

question 104

Multiple Choice

Discount Furniture has seen sales decline in a highly competitive environment. To be able to offer a lower-cost product, management decides to close its factory in North Carolina, laying off 85 workers from the company's 465-person workforce. Under the Workers' Adjustment Retraining and Notification Act, what must Discount Furniture do?

• A) It must explain employment-at-will principles to the employees.
• B) It must give the employees 60 days' notice before it can begin the layoffs.
• C) It must provide all the employees with exit interviews.
• D) It is required to seek legal advice to identify any exemptions available.
• E) It must request employees' consent before releasing their job records.

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Definitions:

Selling Price

The amount of money a customer pays to purchase a product or service.

Contribution Margin

The amount by which sales revenue exceeds variable costs, used to cover fixed expenses and contribute to profit.

Product Costs

The total costs incurred to create a product, including direct materials, direct labor, and manufacturing overhead expenses.

Financial Reporting

The method of generating reports that reveal the financial condition of an organization to its management, investors, and regulatory bodies.