In a Country with a Working- Age Population of 22

question 19

Multiple Choice

In a country with a working- age population of 22 million, 18 million are employed, 2 million are unemployed, and 1 million of the employed are working part- time, half of whom wish to work full- time.The employment rate is

• A)81.8 percent.
• B)75.5 percent.
• C)72.7 percent.
• D)90.0 percent.
• E)90.9 percent.

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Definitions:

Variable Cost

Charges that increase or decrease depending on the volume of production or sales, like raw materials and direct labor.

Contribution Format

A method of income statement presentation that separates fixed costs from variable costs, highlighting the contribution margin.

External Reporting

The process of providing financial information to external stakeholders, such as investors, creditors, and regulatory bodies.

Contribution Approach

A cost accounting approach that separates fixed and variable costs to determine the contribution margin per unit and understand the impact on net income.