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Andrei [34K]
3 years ago
8

Linda's Autoplex performs oil changes on automobiles, light trucks, and sport utility vehicles. She is a profit maximizing busin

ess owner whose firm operates in a competitive market. The marginal cost of an oil change is $10. The marginal productivity of the last worker that Linda hired was 1.5 oil changes per hour. What is the maximum hourly wage that Linda was willing to pay the last worker hired?
a. 510
b. 515
c. 520
d. 530
Business
1 answer:
madam [21]3 years ago
3 0

Answer:

$15 per hour

Explanation:

In order for a profit maximizing firm to operate in a competitive market, the marginal revenue product (MRP) must be equal to the marginal cost (MC).

MRP = 1.5 oil changes per hour x $10 per oil change = $15

since MRP = MC, then Linda should pay her worker a maximum of $15 per hour.

No option is even close, they are all over $500 and that is way off limits.

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8 0
2 years ago
The ACC Tutoring Service provides tutoring to accounting students.
anzhelika [568]

Answer:

$17,500

Explanation:

The computation of the fixed cost and the variable cost per hour by using high low method is shown below:

Variable cost per hour = (High tutoring cost - low tutoring cost) ÷ (High service hours - low service hours)

= ($125,000 - $55,000) ÷ (4,300 hours - 1,500hours)

= $70,000 ÷ 2,800 hours

= $25

Now the fixed cost equal to

= High tutoring cost - (High service hours × Variable cost per hour)

= $125,000 - (4,300 hours × $25)

= $125,000 - $107,500

= $17,500

5 0
4 years ago
Which of the following measures how the level of well-being in a country has changed over time? a. level of nominal GDP per pers
Taya2010 [7]

Answer:

d. growth rate of real GDP per person.

Explanation:

The level of well being of a country can be found by considering the price-index, i.e The real GDP per person and not nominal GDP per person.

4 0
3 years ago
Warranty Costs Milford Company sells a motor that carries a three-month unconditional warranty against product failure. Based on
Yanka [14]

Answer and Explanation:

The computation of the estimated liability and the journal entry is given below:

But before that following calculations need to be done

The Estimated defective units is

= 70,000 × 4%

= 2,800 units

the actual defective units is

= 460 + 350 + 210

= 1,020 units

The no of unclaimed units is

= 2,800 - 1,020

= 1,780 units

Now the warranty expense is

= 1,780 units × $60 per unit

= $106,800

Now the journal entry is given below:

Product warranty expense Dr $106,800

    To Estimated liability  $106,800

(Being estimated liability is recorded)

6 0
3 years ago
One common feature of agile projects is the "walk-around meeting".<br> A. True<br> B. False
SashulF [63]

Answer:

A

Explanation:

Agile means able to move around quickly

3 0
3 years ago
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