Use the Following Information for Questions 10, 11 and 12

question 14

Multiple Choice

Use the following information for Questions 10, 11 and 12
A company that produces breakfast cereal using 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 $90,000 per month - of which $60,000 is labor, $20,000 is other variable costs, and $10,000 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 1.3 times the amount paid on the first shift. For the third shift, labor must be paid 1.5 times what it receives in the first shift.
-What is the total monthly cost if the firm uses three shifts?

• A) $138,000
• B) $185,000
• C) $215,000
• D) $298,000
• E) $365,000

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Definitions:

Organisational Behaviour

A field of study that investigates how individuals, groups, and structure affect and are affected by behavior within organizations, aiming to apply such knowledge toward improving an organization's effectiveness.

Individuals and Groups

Refers to the study and understanding of how people behave and interact within a group setting in organizational contexts.

Maslow's Theory

A psychological framework proposing a hierarchy of human needs, from basic (physiological) needs to higher-level needs like self-actualization, influencing motivation.

Worker Performance

The effectiveness and efficiency with which an employee carries out their assigned duties and responsibilities.