A Worker Making $20 Per Hour Decides to Take a Day

question 11

Multiple Choice

A worker making $20 per hour decides to take a day of unpaid leave from work to attend a graduation ceremony. The worker ordinarily works and 8-hour day and is subjected to a total tax rate of 20%.What is the worker's total opportunity cost from the day of unpaid leave?

• A) $8.00
• B) $128.00
• C) $112.00
• D) $160.00

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Definitions:

Setup Cost

The expenses incurred to get equipment ready to process a different batch of goods.

Production Cycle

The series of steps involved in producing a good or service, from initial raw materials to the finished product.

Kanban

A visual scheduling system that controls the logistical chain from a production point of view, aiming to improve manufacturing efficiency by limiting work-in-progress items.

Safety Stock

Additional inventory kept on hand to guard against stockouts caused by uncertainties in demand and lead-time.