Individual Coverage Under the Fair Labor Standards Act of 1938

question 39

Multiple Choice

Individual coverage under the Fair Labor Standards Act of 1938 refers to the protections (wages,hours,and ages for employment in the United States) offered to:

• A) shareholders if a publicly held company incurs a minimum loss of $300,000.
• B) consumers if the damages incurred by them from using a product is more than $10,000.
• C) employees if their work regularly involves them in commerce between states.
• D) employers if their work is temporary or seasonal.

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Definitions:

Break-even Point

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

Fixed Costs

Fixed expenses that are unaffected by production or sales volumes, encompassing costs like rent, employee salaries, and insurance fees.

Variable Costs

Costs that change in proportion to the level of production or sales volume, such as raw materials and direct labor.

Break-even Sales

The amount of revenue required to cover both the variable and fixed costs of production, leading to a situation where a business makes neither profit nor loss.