A Company Has Variable Costs That Are 4/7 the Value

question 10

Multiple Choice

A company has variable costs that are 4/7 the value of their sales revenues. Total net income for the most recent period was a profit of $53 770 and sales were $420 000. The company has started a new marketing campaign that they hope will increase sales, but it will require additional advertising of $6400. How many sales dollars does the company have to generate in order to remain at the same level of profitability as before the new ad campaign?

• A) $434 933.33
• B) $326 357.50
• C) $420 210.00
• D) $140 396.67
• E) $105 297.50

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Definitions:

Dual Labor Market Theory

A theory that suggests the economy is divided into two segments: the primary sector with good jobs and high wages, and the secondary sector with poor jobs and low wages.

Gender Gap

The differences in opportunities, status, attitudes, and conditions for men and women in various aspects of society, including employment and education.

Gendered Institution

An organization or structure in society that perpetuates gender distinctions and hierarchies in its practices and policies.

Labor Force Participation Rate

The percentage of those in a given category who are employed.