Small Businesses Have Found That Child Care Programs

question 115

Multiple Choice

Small businesses have found that child care programs

• A) are too expensive to offer, which puts them at a serious disadvantage when competing against larger firms to attract the best workers.
• B) can be offered in creative ways that enable the firm to offer an attractive benefit to workers with young children.
• C) are less necessary now than they were before the federal government expanded its child care programs.
• D) are not very expensive, but tend to be more trouble than they are worth.

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Definitions:

Break-Even Point

The production level or sales volume at which total revenues equal total expenses, resulting in no net loss or gain.

Contribution Margin Ratio

A financial metric that represents the percentage of sale price that remains after variable costs are subtracted.

Sales Dollars

The total amount of money generated from the sale of goods or services before any expenses are subtracted.

Margin of Safety

The difference between actual or expected sales and the sales volume at which a company breaks even.