If the Poverty Line for a Family of 2 Is

question 16

Multiple Choice

If the poverty line for a family of 2 is $10,000 then the poverty line for a family of 4 is likely to be

• A)greater than $20,000.
• B)less than $20,000 but greater than $10,000.
• C)exactly $10,000.
• D)less than $10,000.

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses, including taxes, interest, and operating expenses, from its total revenue.

Selling Price

The amount for which a product or service is sold to customers, determined by factors like cost, market demand, and competition.

Fixed Costs

Charges that persist unchanged with fluctuations in production or sales activities, such as leasing costs, employee salaries, and insurance fees.

Contribution Margin Technique

A method used in managerial accounting to analyze the profitability of products, segments, or services by calculating revenues minus variable costs.