In "Learning from Experience: Enterprise Rent-A-Car," the Reason Cited for Low

question 73

Multiple Choice

In "Learning From Experience: Enterprise Rent-A-Car," the reason cited for low employee turnover at Enterprise is

• A) the high base salary employees receive immediately upon being hired.
• B) the company's flexible work schedules.
• C) the generous benefits package employees receive.
• D) the practice of having employees work in teams of less than 10 people.

---

Definitions:

Variable Expenses

Variable expenses are costs that change in proportion with the level of activity or production volume, such as raw materials and direct labor.

Contribution Margin

The residual sum from sales income following the subtraction of variable costs.

Segment Margin

The contribution margin of a specific segment of a business, excluding common fixed costs, to assess the segment's financial performance independently.

Traceable Fixed Expenses

Fixed costs that can be directly associated with a specific business segment or a product.