Tom's Landscaping Service Has Only One Variable Input,which Is Labor

question 8

Multiple Choice

Tom's Landscaping Service has only one variable input,which is labor.Tom's Landscaping Service's labor costs are $300 a day and Tom's Landscaping Service works on 9 yards per day.To work on 10 yards per day,Tom's Landscaping Service's labor costs increase to $325 a day.The marginal cost of working on the 10th yard is

• A) $25.00.
• B) $32.50.
• C) $45.00.
• D) indeterminate from the information given.

---

Definitions:

Key Components

Essential parts or elements that make up a larger system or process.

Acid-Test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with quick assets.

Company's Liquidity

The ability of a company to meet its short-term financial obligations by quickly converting assets into cash without significant loss.

Gross Margin Ratio

A financial metric that measures a company's financial health by dividing its gross profit by net sales, indicating the percentage of sales revenue remaining after deducting the cost of goods sold.