Refer to the Data Provided in Table 10 -Refer to Table 10

question 40

Multiple Choice

Refer to the data provided in Table 10.2 below to answer the following question(s) .
Table 10.2 $$\begin{array} { c c c } \begin{array} { c } \text { Total Labor Units } \\\text { (employees) }\end{array} & \begin{array} { c } \text { Total Product } \\\text { (frames per day) }\end{array} & \begin{array} { c } \text { Price per } \\\text { Frame }\end{array} \\\hline 0 & 0 & \$ 10 \\1 & 10 & \$ 10 \\2 & 30 & \$ 10 \\3 & 55 & \$ 10 \\4 & 70 & \$ 10 \\5 & 82 & \$ 10\end{array}$$
-Refer to Table 10.2. The firm currently employs 4 workers at the market wage of $120 per worker per day. If the firm wants to maximize its profits, it should

• A) hire fewer workers
• B) hire more workers.
• C) make no adjustments as it is already employing the profit-maximizing number of workers.
• D) shut down since it is incurring a loss.

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Definitions:

Fixed Asset Turnover Ratio

The number of dollars of sales that are generated from each dollar of average fixed assets during the year, computed by dividing the net sales by the average net fixed assets.

Days' In Assets Ratio

The Days' In Assets Ratio measures the average number of days it takes for a company to turn its inventory into sales, reflecting inventory management efficiency.

Current Asset Turnover

A financial ratio that measures how effectively a company uses its short-term assets to generate revenue.

Intangible Asset

An asset that lacks physical substance but is identifiable and provides economic benefits to the owner, such as patents or trademarks.