Fred and Barney Fill Egg Cartons with Eggs

question 85

Multiple Choice

Fred and Barney fill egg cartons with eggs. Fred just started the job and can fill only 20 cartons an hour. Barney has significant on-the-job experience that allows him to fill 40 cartons an hour. Both Fred and Barney work 40 hours a week. Fred's average weekly productivity is ______ cartons; Barney's average weekly productivity is ______ cartons; and as a team their average weekly productivity is ______ cartons.

• A) 20; 40; 60
• B) 20; 40; 30
• C) 800; 2,000; 1,600
• D) 800; 1,600; 1,200

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Definitions:

Revenue Variance

The variance between projected revenue and the actual income received.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor.

Net Operating Income

The profit generated from a company's everyday business operations, calculated by subtracting operating expenses from the gross income.