Solution :
A firm hires labor till a point where the cost of hiring is equal to the value of the additional revenue it produces.
We know ,
the wage rate = cos of hiring an additional worker
the value of the additional revenue that the firm produces = price x (MPI) marginal product of the labor.
Therefore, the firm will hire when :
Wage = value of the additional revenue it generates
Thus, wage = price x (MPI) marginal product of the labor ...........(i)
Therefore, given :
wage of a worker = $ 45
Price = $ 12
So, 45 = 12 x MPI
MPI = 3.8
So the marginal product of employing three days of labor = 25-18/4-3 = 7
Marginal product of employing four days of labor = 30-25/4-3 = 5
So the 4th day produces less revenue than the cost that it generates.
So, the firm should hire 3 workers.
Answer:
Inform or entertain the audience
Explanation:
This organization provides readers with information and content about the reviews they perform, but if the audience wants to gain access to book extracts, they have to pay for a premium service. This is a strategy to engage new potential consumers and establish a regular base of customers that enhances the web goal of the organization.
Answer: e) Elena will use test data to validate her model
Explanation:
Test data is a computer program that will help Elena to verify the type of results to expect using some set of inputs.
Answer: a reduction in safety stock and/or lead time
Explanation:
Kanban is a visual system that is used for the management of work as the work moves through a process. It should be noted that it is a concept that tells one what to produce, quantity to produce and when to produce it.
A reduction in the number of kanbans (given a constant container size) requires a reduction in safety stock and/or lead time.
Answer:
Dr Factory Overhead Payable $5,000
Cr Cost of Goods Sold $5,000
Explanation:
What we have done?
Cr Factory Overhead $5000
What we must do?
Dr Factory Overhead $5000
The entry in the expense account is credited, as said in the question. So what we must do is debit it back and waive off its affect from the cost of sales.
So at the end of the period the company is legally required to close the expenses and revenue accounts in-accordance to International Financial Reporting Standards.
What must be the entry?
So the journal entry would be :
Dr Factory Overhead $5,000
Cr Cost of Goods Sold $5,000
