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2 years ago

If Denise wants to know how much the jobs in her gym are worth in comparison to each other, she should do:

1 answer:

5 0

If Denise wants to know how much the jobs in her gym are worth in comparison to each other, she should do job evaluation.

<h3>What is job evaluation?</h3>

Job evaluation involves an organization or individual comparing her job to other competitors.

This is to measure the performance of the company including the growth and to determine the most suitable pay rate.

Therefore,

If Denise wants to know how much the jobs in her gym are worth in comparison to each other, she should do job evaluation.

Learn more on job evaluation below

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Price elasticity of demand = Change in quantity demand / Change in price

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Change in quantity demanded = 0.4 * 8

= 3.2

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1. Computation of the companywide break-even point in dollar sales

First step is to find the Contribution margin ratio

Using this formula

Contribution margin ratio = Contribution margin / Sales

Contribution margin ratio:

Total company: ($240,000/$600,000)=0.4

North : ($120,000/$400,000)=0.4

South : ($120,000/$200,000)=0.6

Now let compute the Company wide break-even point in dollar sales using this formula

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Let plug in the formula

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Break-even point in dollar sales for North region = Traceable fixed expenses / Contribution margin ratio

Let plug in the formula

Break-even point in dollar sales for North region= $60,000 / 0.3

Break-even point in dollar sales for North region= $200,000

3. . Computation for the break-even point in dollar sales for the South region.

Using this formula

Break-even point in dollar sales for South region = Traceable fixed expenses / Contribution margin ratio

Let plug in the formula

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