Lorimar Watch Company Manufactures Travel Clocks

question 74

Multiple Choice

Lorimar Watch Company manufactures travel clocks. The daily marginal cost function associated with producing these clocks is where is measured in dollars/unit and denotes the number of units produced. Management has determined that the daily fixed cost incurred in producing these clocks is $140. Find the total cost incurred by Lorimar in producing the first 300 travel clocks/day.

• A) $2,216
• B) $815
• C) $42,000
• D) $2,076
• E) $1,340

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Definitions:

Bonus Pay

Additional compensation given to employees as a reward for achieving specific performance targets or for exceptional work.

Job Performance

The level to which an employee successfully fulfills the roles, responsibilities, and tasks of their job.

Wage Incentive Plans

Compensation strategies designed to motivate employees by tying payments to performance or productivity levels.

Merit Pay Plans

Systems that attempt to link pay to performance on white-collar jobs.