Ruben, Inc

question 101

Multiple Choice

Ruben, Inc. is a management consulting firm specializing in pension plans. Its billing rate to clients is $120 per hour, and variable costs average $80 per hour. Fixed costs are $24,000 per month. The income tax rate is 20%.
If variable costs increase by 10% and management increases its billing rate by 10%, what is the effect on the breakeven point, in billable hours?

• A) It increases the breakeven point
• B) The breakeven point will not change
• C) It decreases the breakeven point
• D) Cannot be determined

Grasp the significance of meaning in the communication process and the role of feedback in ensuring message comprehension.

Know the stages of the writing process and the importance of spending sufficient time on each phase.

Comprehend the concepts of encoding and decoding in the communication process.

Understand the selection of communication channels and the effect of noise in the communication process.