Suppose That in a Computer Factory, If There Is 1

question 357

Multiple Choice

Suppose that in a computer factory, if there is 1 worker, 80 computers are produced per week. If there are 2 workers, 150 computers are produced per week. If there are 3 workers, 210 computers are produced per week. Given this information and the fact that the firm receives $200 per computer, the marginal revenue product of the third worker is

• A) $4,200.
• B) $12,000.
• C) $10,000.
• D) $14,000.

Understand the process and benefits of batch processing and real-time processing (OLTP) in transaction management.

Understand the calculation and interpretation of financial ratios.

Understand the principles of liquidity and how transactions affect it.

Grasp the concepts of financial statement analysis, including vertical and horizontal analysis.

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Definitions:

Weighted-Average Method

An inventory costing method that assigns an average cost to each item in inventory, calculated by dividing the total cost of goods available for sale by the total units available for sale.

Equivalent Units

A concept used in cost accounting to express the amount of work done on units of production in terms of fully completed units.

Conversion Costs

The costs required to convert raw materials into finished products, typically including labor and overhead.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all goods available for sale.