Why Is a Plumber Unlikely to Be as Rich as a Movie

question 55

Multiple Choice

Why is a plumber unlikely to be as rich as a movie star

• A)Compensating differential creates a higher wage in the movie business.
• B)There haven't been any decent technological advances in the plumbing industry.
• C)Productivity levels are low in the plumbing industry due to low worker morale.
• D)A plumber can provide his services to only a limited number of customers.

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Definitions:

Break-even

The point at which total costs and total revenue are equal, resulting in no net loss or gain, and where the business covers all its costs with its sales revenue.

Monthly Dollar Sales

The total value of sales measured in dollars that a business achieves in one month.

Break-even Point

A situation where the total earnings are equivalent to the total costs, therefore no profit or loss is made.

Sales Dollars

The total revenue generated from the sale of goods or services, measured in dollars.