Druk IncIs a Consulting Firm with 10 Employees

Multiple Choice

Druk Inc.is a consulting firm with 10 employees.Each new client generates $10,000 in revenue.If the company hires another employee who brings in five new clients and all other factors of production are constant, which of the following statements is true?

A) Druk will break even if it hires a twelfth employee for a wage of $50,000.
B) Druk needs to pay $10,000 as wage to the eleventh employee to break even.
C) Druk will break even if it hires a thirteenth employee for a wage of $10,000.
D) Druk needs to pay $50,000 as wage to the eleventh employee to break even.