A Factory Producing CD Players Finds That Its Output Varies

question 30

Multiple Choice

A factory producing CD players finds that its output varies with the number of workers employed each week in the following way: TABLE 7-2

-Refer to Table 7-2. What is the marginal product of the fifth worker hired?

• A) 18 units of output
• B) 20 units of output
• C) 94 units of output
• D) 112 units of output

---

Definitions:

Raw Materials Inventory

The total cost of all parts and materials kept in stock by a company to be used in production.

Indirect Materials

Materials used in the production process but not directly traceable to a finished product, such as lubricants and cleaning supplies.

Advertising

The activity of promoting products or services to potential customers through various media channels.

Current Asset Items

Assets that are expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer; includes cash, accounts receivable, and inventory.