Assume That Each Day a Firm Uses 13 Employee-Hours Per

question 132

Multiple Choice

Assume that each day a firm uses 13 employee-hours per day and an office to produce 100 units of output. The price of each unit output is $5, the hourly wage rate is $10, and rent on the office is $200 per day. Each day the firm earns a ________ of ________.

• A)profit; $370
• B)loss; $200
• C)profit; $170
• D)loss; $170

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Definitions:

Specific Identification

An inventory costing method where the cost of each specific item in inventory is identified and assigned to that item.

Net Income

The profit of a company after all expenses and taxes have been deducted from revenue.

Management

The process of directing, controlling, and organizing the work of a company or organization and its employees.

Price Changes

Refers to variations in the cost of goods or services over a period of time, often impacting consumer purchasing power and business profit margins.