You Are a Union Representative for Teamsters Local 695 Representing

question 45

Essay

You are a union representative for Teamsters Local 695 representing bus drivers, canning workers, police and firefighters, and truck drivers. An angry member calls the union hall because he has just learned the union has been paying for television ads supporting a presidential candidate he does not favor. What can you tell this union member about how union funding for political campaigns works and what can be done to address his concerns?

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Definitions:

Contribution Margin

The difference between the sales revenue of a company and its variable costs.

Break-even Sales

Break-even sales refer to the amount of revenue required to cover all fixed and variable costs, resulting in zero profit or loss.

Selling Price

The amount of money a buyer pays to acquire a product or service.

Fixed Costs

Expenses that do not change in total regardless of changes in the level of production or sales activities within a certain range.