An Employee Whose Regular Hourly Rate Is $20 and Whose

question 54

Multiple Choice

An employee whose regular hourly rate is $20 and whose overtime rate is 1.5 times the regular rate worked 45 hours one week. The employee's gross pay was

• A)$950.
• B)$900.
• C)$800.
• D)$1,350.

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Definitions:

Salesvolume

The total amount of a product sold within a specific period.

Degree of Operating Leverage

A financial ratio that measures the sensitivity of a company's operating income to its sales volume, highlighting the impact of fixed costs.

Variable Expenses

Costs that vary directly with the level of production or sales volume.

Operating Income

Earnings before interest and taxes (EBIT), representing the profit from a company’s ordinary, core business operations.