John Elton,who Is Classified as Direct Labor,earns $1,000 Per Week

question 14

Multiple Choice

John Elton,who is classified as direct labor,earns $1,000 per week and is entitled to three weeks of vacation and 5 holidays each year.How much should be accrued for his holiday pay each week?

• A)$21.00
• B)$40.41
• C)$20.41
• D)$1,000.00

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Definitions:

Net Operating Income

The earnings a business achieves following the removal of operational costs from the income earned through its activities.

Break-even Point

The break-even point is the level of production or sales at which total revenues equal total costs, resulting in no profit or loss.

Break-even

The point at which total revenues and total expenses are equal, resulting in no net loss or gain.

Monthly Dollar Sales

The total sales revenue earned by a business within a month, measured in dollars.