A deli sells sandwiches for $8.50 each, on average. Material costs are $2.25 per sandwich and fixed costs are $95 per hour including the cost of labor. The shop employs three workers, each of whom makes an entire sandwich and requires five minutes to process the entire order for each customer. Assuming labor costs are fixed and demand is 25 sandwiches per hour, how much profit does the shop make per hour, on average? Multiple Choice $212.50 $95.00 $61.25 $45.25
A deli sells sandwiches for $8.50 each, on average. Material costs are $2.25 per sandwich and fixed costs are $95 per hour including the cost of labor. The shop employs three workers, each of whom makes an entire sandwich and requires five minutes to process the entire order for each customer. Assuming labor costs are fixed and demand is 25 sandwiches per hour, how much profit does the shop make per hour, on average? Multiple Choice $212.50 $95.00 $61.25 $45.25
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A deli sells sandwiches for $8.50 each, on average. Material costs are $2.25 per sandwich and fixed costs are $95 per hour including the cost of labor. The shop employs three workers, each of whom makes an entire sandwich and requires five minutes to process the entire order for each customer. Assuming labor costs are fixed and demand is 25 sandwiches per hour, how much profit does the shop make per hour, on average?
Multiple Choice
$212.50
$95.00
$61.25
$45.25
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