The Department Store Hired 12 Temporary Employees to Wrap Holiday

question 73

True/False

The department store hired 12 temporary employees to wrap holiday gifts.After giving the newly-hired gift-wrappers a two-hour demonstration of gift-wrapping techniques and designs,each trainee was required to wrap three packages of particular types.All the trainees's efforts were rated as either good or very good by the trainer.This result is a strong indication that the training was effective.

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Definitions:

Operating Income

A financial metric that shows how much of a company's revenue is left over after paying for variable costs of production like wages and raw materials.

Contribution Format

A method of income statement presentation that separates fixed costs from variable costs to show the contribution margin.

Break-even Point

The level of sales or production at which a business's revenues equal its expenses, resulting in no net profit or loss.

Variable Expenses

Costs that change in direct proportion to changes in the level of activity or volume of output produced.