Heath Ltd Owns and Operates a Textile Manufacturing Plant

question 38

Multiple Choice

Heath Ltd owns and operates a textile manufacturing plant. Garments are sold for $40 each. The fixed plant and equipment costs are $51 600 per annum. Producing each garment incurs $15 of labour costs and $7.80 of material costs. If Heath Ltd's cost of plant and equipment increases, which of the following is true?

• A) The contribution margin increases
• B) Variable costs increases
• C) The break-even point increases
• D) No change occurs

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Definitions:

Job Analysis

is the process of studying and collecting information about a job's tasks, responsibilities, and the needed qualifications for performing the job.

Equitable Pay Structure

A compensation system designed to fairly reward employees based on job roles, experience, performance, and market rates, ensuring fairness and equality.

Wage Costs

The total expenditure incurred by an employer for the payment of wages to employees, including salaries, bonuses, and overtime pay.

Employee Performance

Employee performance refers to how well an employee fulfills their job duties and executes their tasks, often measured against pre-defined benchmarks or objectives.