Ruben Ltd Is a Management Consulting Firm Specialising in Pension Plans

question 26

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 fixed costs increase by 10% and management increases its billing rate by 10%, what is the effect on the breakeven point, in billable hours?

• A) It increases the breakeven point
• B) The breakeven point will not change
• C) It decreases the breakeven point
• D) Cannot be determined

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Definitions:

Pregnant

The state of carrying a developing fetus within the female body, typically lasting around 40 weeks from the last menstrual period to childbirth.

Screening

A preliminary or indicating procedure.

Menstrual Period

The phase of the menstrual cycle during which bleeding from the uterus occurs through the vagina, marking the shedding of the uterine lining, typically lasting between three to seven days.

Female Patients

Refers to individuals seeking medical care who identify as female.