The break-even point is where
a. total sales equal total variable costs.
b. contribution margin equals total fixed costs.
c. total variable costs equal total fixed costs.
d. total sales equal total fixed costs.
Answer: b. contribution margin equals total fixed costs.
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An organization relates actively and continuously to certain segments of its clients, employees, directors and the community. They are
a. primary publics b. secondary publics c. tertiary publics d. irrelevant publics e. internal publics
Ludwig is a tenant of a commercial building. Contrary to the lease agreement, Ludwig has been storing hazardous chemicals in the building
On one occasion the chemicals ignited and started a small fire as a result of which the fire department had to be called. A report of the incident and the cause of the fire was sent to the landlord Colby Enterprises. Two weeks after Colby received the Fire Department's incident report, Ludwig paid his monthly rent to Colby and received a receipt for the payment. After discussion with its insurers, Colby served a notice on Ludwig to remedy the breach of the lease agreement. Ludwig failed to do it by the time allowed. With respect to the actions available to Colby at this stage, which of the following statements is TRUE? A) Colby can increase Ludwig's rent as a penalty for his non-compliance B) Colby can evict Ludwig from the premises C) Colby can remove the hazardous chemical from the building itself and charge Ludwig for the cost of doing so. D) A and C