Table 8-5 -Refer to Table 8-5

question 204

Essay

Table 8-5
$\begin{array}{|c|c|c|c|c|c|}\hline \begin{array}{c}\text { Number of } \\\text { Workers }\end{array} & \begin{array}{c}\text { Output } \\\text { (boxes) }\end{array} & \begin{array}{c}\text { Marginal } \\\text { Product of } \\\text { Labor }\end{array} & \begin{array}{c}\text { Office } \\\text { Rent } \\\text { (dollars) }\end{array} & \begin{array}{c}\text { Labor } \\\text { Cost } \\\text { (dollars) }\end{array} & \begin{array}{c}\text { Total Cost } \\\text { (dollars) }\end{array} \\\hline 0 & 0 & -- & & & \\\hline 1 & 220 & & 400 & 200 & \\\hline 2 & & 250 & & & 800 \\\hline 3 & 680 & & & & \\\hline 4 & & 160 & & & 1,200 \\\hline 5 & 940 & & & 1,000 & \\\hline 6 & 980 & & & & 1,600 \\\hline\end{array}$
-Refer to Table 8-5.Suzette's Fancy Packaging subcontracts with Sunshineland Pecans to box dried fruit and nuts for Suzette's mail order business.Suzette rents space for her factory for $400 a week in a nearby strip mall.She can hire temporary workers for $200 a week.Table 8-5 above shows her output and cost data.Use the table to answer questions a-e.
a.Complete the table.
b.In the last week of summer Suzette closes her business to go on a family vacation.What are her costs during that week?
c.In one week Suzette exactly breaks even.If her revenue for the week is $1,200,how many boxes of fruit and nuts did she produce?
d.Judging from the marginal product of labor data,would you say that Suzette had to settle for increasingly unproductive workers? Explain your answer.
e.Suzette has received an order for 1,500 boxes of nuts per week for the next 3 months.If she expects the trend in the marginal product of labor will continue in the same direction,what do you think she should do? Should she not commit until she can move to a larger space or should she just hire more workers? Explain your answer.

Demonstrate how to record transactions involving cash and credit sales, including sales discounts and sales returns.

Prepare general journal entries for sales transactions, including those involving sales taxes and credit terms.

Calculate the amount of cash collected in transactions involving sales taxes.

Distinguish between the recording of cash sales and credit sales, including the impact of sales returns and allowances.

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Definitions:

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in its price, income levels, or other factors.

Deadweight Loss

The loss of economic efficiency that can occur when the free market equilibrium for a good or a service is not achieved.

Taxes on Labor

Financial charges imposed by governments on workers' income, salaries, and wages.

Elderly

Individuals who are significantly beyond the usual age for retirement, often implying an age at which they receive certain societal or economic benefits like pensions.