Choose the Word or Phrase in [ ] Which Will

question 2

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Long-term health care [does | does not] have a deductible.

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Definitions:

Unit Contribution Margin

The amount of revenue per unit sold that exceeds the variable costs involved in producing that unit.

Operating Income

Earnings before interest and taxes (EBIT), representing the profit from regular business operations.

Fixed Costs

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

Break-even Point

The financial stage at which total revenues equal total costs, resulting in no net loss or gain.