( A manufacturing plant that m... A manufacturing plant that makes boomerangs has a fixed cost of $500/day and a variable cost of $40/hr for labor for the first 8 hours of production and $60/hr for each hour of production over 8 hours. Assume that the laborers are sent home after completing the required output and paid only for hours worked. If the output of boomerangs is 75/hr, what are the marginal and average costs per boomerang for producing: 450 boomerangs 525 boomerangs 675 boomerangs

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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( A manufacturing plant that m...
A manufacturing plant that makes
boomerangs has a fixed cost of
$500/day and a variable cost of $40/hr
for labor for the first 8 hours of
production and $60/hr for each hour of
production over 8 hours. Assume that
the laborers are sent home after
completing the required output and
paid only for hours worked. If the
output of boomerangs is 75/hr, what
are the marginal and average costs per
boomerang for producing:
450 boomerangs
525 boomerangs
675 boomerangs
750 boomerangs
Transcribed Image Text:( A manufacturing plant that m... A manufacturing plant that makes boomerangs has a fixed cost of $500/day and a variable cost of $40/hr for labor for the first 8 hours of production and $60/hr for each hour of production over 8 hours. Assume that the laborers are sent home after completing the required output and paid only for hours worked. If the output of boomerangs is 75/hr, what are the marginal and average costs per boomerang for producing: 450 boomerangs 525 boomerangs 675 boomerangs 750 boomerangs
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