Consider the Graphs That Follow (The Horizontal Axis Represents Activity;

question 6

Essay

Consider the graphs that follow (the horizontal axis represents activity; the vertical axis represents total dollars). Required:
For items A-I that follow, choose the graph that best represents the cost behaviour pattern described. Note: Graphs can be used more than once.
A. Straight-line depreciation on machinery.
B. The cost of chartering a private airplane. The cost is $800 per hour for the first 6 hours of a flight; it then drops to $600 per hour.
C. The wages of table service personnel in a restaurant. The employees are part-time workers who can be called upon for as little as 4 hours at a time.
D. Weekly wages of store clerks who work 40 hours each week. One clerk is hired for every 125 sales made during the month.
E. The cost of tires used in the production of trucks.
Up to 20,000 kilowatt hours (KWH): $4,000
Above 20,000 kilowatt hours: $4,000 + $0.02 per KWH

---

Definitions:

Full Potential

The highest or greatest level of performance, achievement, or utilization that an individual, group, or entity is capable of reaching.

Achievement Motivation

The drive to excel, achieve in relation to a set of standards, or strive to succeed.

High Performance

Achieving significantly better outcomes or efficiency than average expectations or standards.

Hierarchy of Needs

A theory in psychology proposed by Abraham Maslow, suggesting that individuals are motivated by a series of needs that must be satisfied in a particular order, starting with the most basic physiological needs.