Some Healthcare Employers Have Offered Reduced Amounts of Cash Severance

question 5

Multiple Choice

Some healthcare employers have offered reduced amounts of cash severance and replace some of the severance value by offering:

• A) Continued use of day-care services
• B) Company stock
• C) Unemployment compensation
• D) Outplacement services

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating how much contributes to covering fixed costs and generating profit.

Operating Capacity

The maximum output that a company can produce under normal circumstances over a specific period.

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not influence future business decisions.

Opportunity Costs

The cost of forgoing the next best alternative when making a decision, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.