Production Data for Joe's Pizza Parlor Are as Follows

question 79

Multiple Choice

Production data for Joe's Pizza Parlor are as follows. For simplicity assume that labor is the only input. Each pizza sells for $5. How many workers will Joe hire if he must pay each one $35 a day?

• A) 1
• B) 2
• C) 3
• D) 4

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Definitions:

Pro-forma Cash Flow

An estimate of future cash inflows and outflows of a company, usually projecting future financial performance.

Income Statement

A financial statement that shows a company’s revenues, expenses, and profits over a specific period, typically a quarter or year.

Credit Application

A form or request made by an individual to a financial institution for extending credit.

Capacity

The maximum amount that something can contain or produce.