Below Is Productivity Data for Firm Nearly Done Inc

question 30

Multiple Choice

Below is productivity data for firm Nearly Done Inc.which purchases resources in a perfectly competitive factor market.

-Refer to the above information to answer this question.What is Nearly Done's total wage bill if the market wage rate is $8?

• A)$16.
• B)$36.
• C)$48.
• D)$56.
• E)$66.

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Definitions:

Variable Cost

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

Fixed Costs

Costs that do not change in total despite changes in the volume of goods or services produced or sold.

Margin of Safety

The difference between actual or projected sales and the break-even point. It measures the amount by which sales can decline before a business incurs a loss.

Contribution Margin

The amount of revenue remaining after deducting variable costs, which contributes towards covering fixed costs and then generating profit.