Dehnert Midwifery's Cost Formula for Its Wages and Salaries Is

question 230

Multiple Choice

Dehnert Midwifery's cost formula for its wages and salaries is $2,030 per month plus $409 per birth. For the month of May, the company planned for activity of 112 births, but the actual level of activity was 114 births. The actual wages and salaries for the month was $50,800. The wages and salaries in the planning budget for May would be closest to:

• A)$47,838
• B)$50,800
• C)$49,909
• D)$48,656

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Definitions:

Price Per Unit

The cost assigned to a single unit of a good or service.

Marginal Revenue

The profit derived from the sale of an additional item of a product or service.

Cheese

A dairy product made from curdled or cultured milk that comes in various flavors and textures.

Marginal Revenue Curve

A graphical representation that shows how marginal revenue varies as the quantity of the product sold changes.