If an Additional Dollar Spent on Monitoring Would Reduce Shirking

question 31

Multiple Choice

If an additional dollar spent on monitoring would reduce shirking by 10 minutes,then the firm will increase the worker's wage by $1 if this caused

• A) shirking to increase by less than 10 minutes.
• B) shirking to decrease by more than 10 minutes.
• C) shirking to decrease by less than 10 minutes.
• D) monitoring to become unnecessary.

Apply fixed and variable cost concepts to determine required sales for targeted net income.

Analyze the effects of capacity utilization on net income and break-even points.

Determine the contribution margin and its importance in pricing and profitability analysis.

Calculate total costs and net income at different production levels.