Use the Following Information to Answer Questions 7, 8 and 9

question 1

Multiple Choice

Use the following information to answer Questions 7, 8 and 9
A company that produces diet supplements that uses a highly automated packaging process has the following production and revenue alternatives for three products A, B, and C) that are feasible to produce with existing plant and equipment. Total revenue is in thousands of dollars per month. Total cost for the first shift is $200,000 per month - of which $120,000 is labor, $60,000 is other variable costs, and $20,000 is fixed cost. As the number of shifts is increased, fixed cost remains at $20,000 per month while variable costs other than labor remain the same per shift. For the second shift, labor must be paid 1.2 times the amount paid on the first shift. For the third shift, labor must be paid 1.4 times what it receives in the first shift.
-What is the total monthly cost if the firm uses two shifts?

• A) $144,000
• B) $200,000
• C) $240,000
• D) $344,000
• E) $404,000

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Definitions:

Palm of the Hand

The inner surface of the hand between the wrist and fingers, characterized by its soft, flexible skin and five digits.

Medial and Lateral

Terms used to describe the relative positions of structures within the body, with medial meaning towards the midline and lateral meaning away from the midline.

Anterior and Posterior

Terms used to describe the location of structures within the body, with anterior meaning towards the front and posterior meaning towards the back.

Superior and Inferior

Terms used in anatomy to describe a structure's location; "superior" means above or higher, and "inferior" means below or lower.