Production Data for Joe's Pizza Parlor Are as Follows How Many Workers Will Joe Hire If He Must Pay

question 123

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. $$\begin{array} { | c | c | } \hline \text { Number of Workers } & \text { Pizzas Baked Per Day } \\\hline 0 & 0 \\\hline 1 & 10 \\\hline 2 & 18 \\\hline 3 & 24 \\\hline 4 & 30 \\\hline 5 & 32 \\\hline\end{array}$$ How many workers will Joe hire if he must pay each one $45 a day?

• A) 1
• B) 2
• C) 3
• D) 4

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Definitions:

Times Interest Earned Ratio

A metric used to measure a company's ability to meet its debt obligations by comparing its interest expenses to its earnings before interest and taxes.

Debt

An amount of money borrowed by one party from another, under the condition that it is to be paid back at a later date, often with interest.

Investment

The action or process of investing money for profit or material result.

Coupon Rate

A bond's annual interest yield, represented as a percentage of its principal amount.