With respect to negotiating wage rates and an employer's ability to pay, which of the following statements is true?
A. An economic formula is often used to determine the relationship between profits and ability to pay.
B. The ratio of labor costs to total costs is a significant factor.
C. The way profits are to be used should have no bearing on ability-to-pay concerns.
D. If a company has no profits, its inability to pay is obvious.
Answer:B
With respect to negotiating wage rates and an employer's ability to pay, which of the following statements is true?
A. An economic formula is often used to determine the relationship between profits and ability to pay. B. The ratio of labor costs to total costs is a significant factor. C. The way profits are to be used should have no bearing on ability-to-pay concerns. D. If a company has no profits, its inability to pay is obvious.