David Earns a Base Rate of $12 an Hour and Receives

question 48

Multiple Choice

David earns a base rate of $12 an hour and receives a weekly attendance award of $20.He works 40 hours this week.What would be his total compensation for the week?

• A) $480
• B) $600
• C) $500
• D) $520
• E) $250

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Definitions:

Contribution Margin

The selling price per unit, minus the variable cost per unit, used to determine the profitability of products or services.

Fixed Costs

Business expenses that remain constant regardless of the level of goods or services produced.

Fixed Costs

Costs that do not change with the level of production or sales over a certain period, such as rent or salaries.

Profit

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.