George and Susan Work at the Same Brewery

question 210

Multiple Choice

George and Susan work at the same brewery. George works in advertising. Susan works as a forewoman in the bottling plant. George is paid more than Susan.

• A)Because the male worker earns a higher salary than the female worker, the employer must be discriminating against women.
• B)If George has better performance reviews than Susan, the company might be rewarding George for his high productivity.
• C)If forepersons at bottling plants typically earn more than employees in the advertising department, then the brewery must be discriminating against women.
• D)George might be earning more because he works the day shift while Susan works the night shift.

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Definitions:

Unit Contribution Margin

The amount that the sale of one unit contributes toward covering fixed costs and then to profit, calculated as the selling price per unit minus the variable cost per unit.

Contribution Margin Ratio

A financial metric that shows the percentage of sales revenue remaining after variable costs are subtracted, indicating how efficiently a company can produce and sell products.

Break-even Point

A point where total cost and total revenue are equal, indicating no profit or loss and where production or sales start becoming profitable.

Fixed Expenses

Overheads such as rent, employee salaries, and insurance that do not fluctuate with changes in sales or manufacturing volumes.