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A contractor has monthly fixed overhead of $36,000. Each average small job contributes $4,500 toward overhead after direct costs. How many such jobs are needed to break even for the month?

Correct Answer

D) 8 jobs.

Break-even job count is fixed overhead divided by contribution per job: $36,000 / $4,500 = 8 jobs.

Answer Options
A
4 jobs.
B
6 jobs.
C
7 jobs.
D
8 jobs.

Why This Is the Correct Answer

Break-even job count is fixed overhead divided by contribution per job: $36,000 / $4,500 = 8 jobs.

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