A contractor has monthly fixed overhead of $42,000. Each average service job contributes $3,500 toward overhead after direct costs. How many such jobs are needed to break even for the month?
Correct Answer
D) 12 jobs.
Break-even job count is fixed overhead divided by contribution per job: $42,000 / $3,500 = 12 jobs.
Why This Is the Correct Answer
Break-even job count is fixed overhead divided by contribution per job: $42,000 / $3,500 = 12 jobs.
Why the Other Options Are Wrong
Option A: 9 jobs.
9 jobs. is below the supported result for break-even analysis; it likely uses the wrong base, period, or account bucket.
Option B: 10 jobs.
10 jobs. is below the supported result for break-even analysis; it likely uses the wrong base, period, or account bucket.
Option C: 11 jobs.
11 jobs. is below the supported result for break-even analysis; it likely uses the wrong base, period, or account bucket.
Memory Technique
Break-Even Analysis drawer for Planning Monthly: label count before counting dollars.
Reference Hint
Study anchor (closed-book): memorize Break-even analysis from CSLB Law and Business Study Guide; CSLB 2026 Law Book / CSLB Law and Business Study Guide Business Finances; know the rule or calculation trigger without relying on exam-room lookup.
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