alculate the annual financial impact of hiring the extra worker.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Artisan Metalworks has a bottleneck in their production that occurs within the engraving department. Jamal Moore, the COO, is considering hiring an extra worker, whose salary will be $54,000 per year, to solve the problem. With this extra worker, the company could produce and sell 3,000 more units per year. Currently, the selling price per unit is $26.00 and the cost per unit is $7.75.
Direct materials | $3.40 |
Direct labor | 1.10 |
Variable |
0.45 |
Fixed overhead (primarily |
2.80 |
Total | $7.75 |
Using the information provided, calculate the annual financial impact of hiring the extra worker.
Profit $fill in the blank 1
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