Reevis Company Has Fixed Costs of $7,500

question 65

Multiple Choice

Reevis Company has fixed costs of $7,500. Their contribution margin ratio is 20%. What is the break-even point in sales dollars?

• A) $22,000
• B) $37,500
• C) $1,500
• D) $32,750

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Definitions:

Grievance

Formal complaint filed by an employee or a union that management is violating some provision of a union contract.

Mediation

Dispute resolution process that uses a third party, called a mediator, to make recommendations for settling labor–management differences.

Strike

Temporary work stoppage by employees until a dispute is settled or a contract signed.

Lockout

Management decision to put pressure on union members by closing the firm.