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.
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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