Assume Sales of $10,000, Variable Costs of $7,000, and Fixed

question 48

Multiple Choice

Assume sales of $10,000, variable costs of $7,000, and fixed costs of $2,000.Calculate contribution margin and operating income.

• A)Contribution margin = $3,000; Operating income = $1,000
• B)Contribution margin = $5,000; Operating income =$1,000
• C)Contribution margin = $8,000; Operating income = $1,000
• D)Contribution margin = $6,000; Operating income = $1,000

Differentiate between the human-capital and signaling theories of education.

Explain the factors contributing to the earnings gap between individuals with different levels of education.

Identify the characteristics that lead to a "superstar" phenomenon in earnings.

Describe how efficiency wages and discrimination can influence wage levels and employment rates.