A Contractor Has a Weekly Payroll of $6,976 for 32

question 132

Multiple Choice

A contractor has a weekly payroll of $6,976 for 32 employees. What is the average weekly salary of each employee?

• A)$228
• B)$238
• C)$208
• D)$218
• E) none of the above

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Definitions:

Margin of Safety

The difference between actual or projected sales and the break-even point, indicating the level of risk in missing sales projections.

Break-even Sales

The amount of revenue needed to cover total costs, both fixed and variable, indicating the point at which a company neither makes a profit nor incurs a loss.

Margin of Safety

The difference between actual or projected sales and the sales level necessary to break even, as a buffer against uncertainty.

Contribution Margin

The difference between sales revenue and variable costs of a product or service, indicating how much contributes towards covering fixed costs and profit.