The following two questions require interpretation of the graph below:
-Interpret the data in the graph.
Definitions:
Operating Income
The profitability from a company's core business operations, excluding deductions of interest and taxes.
Fixed Costs
Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.
Direct Labor Rate
The cost per labor-hour of the workers directly involved in the manufacturing or production process.
Fringe Benefits
Fringe benefits are additional compensation provided to employees beyond their normal wages, including health insurance, retirement plans, and paid time off.
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