The Worker Productivity of Cutie Cupcakes Is Presented in the Following

question 147

Multiple Choice

The worker productivity of Cutie Cupcakes is presented in the following table.Use the table to answer the following questions:

-If the wage is $8 and the price of a cupcake is $4,what are Cutie Cupcakes' profits at the optimal amount of labor?

• A) $2,200
• B) $2,600
• C) $4,600
• D) $5,000
• E) $7,500

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Definitions:

Common Fixed Expenses

Fixed costs shared across different departments or product lines, such as rent or administrative salaries, not directly tied to any one aspect of business operations.

Net Operating Income

A company's revenue minus its operating expenses, not including taxes and interest expenses. It indicates the profitability from regular operations.

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period.

Segment Margin

The amount of profit or loss generated by a specific division or segment of a company, expressed as a percentage of its revenues, highlighting the segment's operational efficiency and profitability.