Other Things Being Equal, You Can Make $20,000 a Year

question 19

Multiple Choice

Other things being equal, you can make $20,000 a year teaching, $25,000 a year typing, $30,000 a year driving a cab, and $40,000 a year as a chef. You have a comparative advantage in

• A)teaching.
• B)driving a cab.
• C)being a chef.
• D)one of them but we need more information to know which.

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Definitions:

Target Profit

The goal set for the amount of net income a company plans to achieve at a specific time.

Units Sold

The quantity of product units that have been sold during a particular time period.

Contribution Format

The contribution format is a financial statement layout that separates fixed and variable costs, allowing for easier calculation of contribution margin and breakeven analysis.

Net Operating Income

The profit realized from a business's operations after subtracting operating expenses from revenue.