-Refer to the Above Table

question 131

Multiple Choice

-Refer to the above table. If the price of the product is $1.50, and the marginal factor cost of an additional unit of an input is $105, how many units of labor should be hired?

• A) 11
• B) 12
• C) 13
• D) 14

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Definitions:

Sales Volume

The quantity of goods or services sold by a company within a specific period, used to measure business performance.

High-Low Method

An accounting technique used to estimate fixed and variable costs based on the highest and lowest levels of activity or cost.

Variable Cost

A cost that changes in direct proportion to changes in the level of business activity or output.

Fixed Cost

A cost that does not vary with the level of production or sales, such as rent, property taxes, and salaries.