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

question 123

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 marginal profit of the sixth worker?

• A)$100
• B)−$50
• C)−$75
• D)−$125

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Definitions:

Subcontracting

The practice of assigning parts of a project or job to outside companies or specialists to capitalize on efficiency and expertise.

Regular Time

The standard hours that an employee is scheduled to work, excluding overtime or abnormal schedules.

Aggregate Planning

A process by which a company determines optimal levels of capacity, production, subcontracting, inventory, stockouts, and even pricing, over a specified time period.

Ending Inventory

The value of goods available for sale at the end of an accounting period.