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Ruben Ltd Is a Management Consulting Firm Specialising in Pension Plans

question 39

Multiple Choice

Ruben Ltd. is a management consulting firm specialising in pension plans. Its billing rate to clients is $120 per hour, and variable costs average $80 per hour. Fixed costs are $24,000 per month. The income tax rate is 20%. If variable costs increase by 10% and management increases its billing rate by 10%, what is the effect on the breakeven point, in billable hours?


Definitions:

Acuity System

A method used in healthcare settings to assess the severity of patients' conditions and needs, guiding the allocation of resources and staff accordingly.

Nurse Manager

A registered nurse who oversees the nursing staff and the quality of patient care in a healthcare facility.

Staffing

The process of hiring, placing, and scheduling employees in a workplace, especially in healthcare settings.

Voided

An act of emptying the bladder of urine.

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