A Local Computer Manufacturer Hires an Additional Worker and Pays

question 9

Multiple Choice

A local computer manufacturer hires an additional worker and pays $10.00 per hour for an 8 -hour day. The worker is capable of assembling 3 computers an hour. The firm sells each computer for $1,500. What is the marginal physical product of this worker?

• A) $10.00 per hour
• B) 3 computers per hour
• C) $1,500 per unit produced
• D) $80.00 per day

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Definitions:

Inventory Liquidations

The process of converting a company's inventory into cash, typically at a discount, often used to meet short-term financial needs.

Income Taxes

Taxes imposed by government authorities based on the income earned by individuals and corporations.

Inventory Valuation Errors

Mistakes in calculating the end inventory that can significantly affect a company's cost of goods sold, profits, and tax liabilities.

Income Before Taxes

Income before taxes represents a company's earnings before any income tax expense has been deducted, reflecting the profitability of a company's operations.