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Sarah Mayer works as a marketing executive and has been unhappy with her job profile for several months now. Over the months, she has regularly discussed with her manager how her skills lie in administrative tasks instead of in marketing. In addition, she discusses how she can make a smooth transition into the administrative role. Which type of response is Mayer using in this situation?
Fixed Costs
Costs that do not change with the level of production or sales, such as rent and insurance.
Break-even Sales
The amount of revenue needed to cover both fixed and variable costs, resulting in zero net income or loss.
Variable Costs
Expenses that change in proportion to the activity or volume of production or sales, such as raw materials and direct labor.
Break-even Point
The point at which total revenues equal total expenses, indicating that a business is neither making a profit nor incurring a loss.
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