Table 18-B Consider the Following Daily Production Data for MadeFromScratch, Inc. MadeFromScratch

question 58

Multiple Choice

Table 18-B
Consider the following daily production data for MadeFromScratch, Inc. MadeFromScratch sells cupcakes for $3 each and pays the workers a wage of $325 per day.
-Refer to Table 18-11. What is the third worker's marginal product of labor?

• A)120 cupcakes
• B)140 cupcakes
• C)160 cupcakes
• D)180 cupcakes

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Definitions:

Operating Capacity

The maximum output that a business can produce using its current resources and facilities without additional investment.

Dividend Payout Ratio

A financial metric that measures the percentage of a company's earnings paid to shareholders in the form of dividends.

Projected Fixed Assets

Estimates of the value of long-term assets that a company plans to acquire and use for more than one year, for purposes such as production or administration.

Sales Capacity

The maximum amount of sales a company can achieve within a given period, based on its resources and market demand.