Multiple Choice QuestionOne worker can produce 7 units of output with a selling price of $2.60 each. Even though the firm competes in an imperfect market, business is so good that the manager hires a second worker who produces 6 units. To sell these six additional units the firm must lower the price to $2.40 each. Similarly, the boss hires a third worker who adds 5 units to total product, and these units are worth $2.20 each. But to sell these 5 units, the workers must take a 20-cent price cut on the 13 units produced by the first two workers, so the third worker's MRP is only $8.40. Calculate the total revenue for the firm with three workers.Multiple choice question.$46.80$43.20$32.60$39.60

Multiple Choice QuestionOne worker can produce 7 units of output with a selling price of $2.60 each. Even though the firm competes in an imperfect market, business is so good that the manager hires a second worker who produces 6 units. To sell these six additional units the firm must lower the price to $2.40 each. Calculate the total revenue for the firm with two workers.Multiple choice question.$33.80$31.20$32.60$32.50

Multiple Choice QuestionA manufacturing company currently produces 1,000 units of a product at a cost of $5,000. The units sell for $7,000. Alternatively, the company can process the units further to produce a refined product that will sell for $10,000. The additional processing will cost $4,000. The company should:Multiple choice question.sell as is because processing further will reduce income by $6,000process further because net incremental income will be $1,000process further because net incremental income will be $6,000sell as is because the incremental income of selling as is versus processing further will increase income by $1,000

Multiple Choice QuestionA firm's manager is given the following information: To sell 4 units of output, a price of $132 must be charged; this level of output reflects marginal revenue of $102 and marginal costs of $60. If the firm wants to sell 5 units of output, a price of $122 must be charged; this reflects marginal revenue of $82 and marginal costs of $70. To sell 6 units of output, a price of $112 must be charged; at this level of output, marginal revenue will be $62 and marginal costs $80. What should the manager do?Multiple choice question.Produce 4 units of output and charge $132.Produce an amount greater than 6 units.Produce 6 units of output and charge $112.Produce an amount less than 4 units.Produce 5 units of output and charge $122.

Multiple Choice QuestionA company receives a special order of 10,000 units of product. The potential customer is willing to pay $0.75 per unit. Current sales are $90,000 and current costs are $75,000 for 90,000 units. If the order is accepted, costs will increase to $82,000. If the company has the capacity to accept the order without affecting current sales, the company should:Multiple choice question.reject the order, because income will decrease by $500reject the order, because the sales price of $0.75 per unit is less than current costs of $0.83 per unitaccept the order, because income will increase by $500accept the order, because sales will increase by $7,500

Multiple Choice QuestionDirect materials are $15 per unit; direct labor is $7 per unit and variable overhead costs are $2 per unit. If total product costs are $27, what are fixed costs per unit?Multiple choice question.$30$24$3