An assembly line can produce 80 units per hour. The line’s hourly cost is $4250 on straight time (the first 8 hours). Workers are guaranteed a minimum of 5 hours. There is a 35% premium for overtime, however, productivity for overtime drops by 10%. What are the average and marginal costs per unit for the following daily quantities? (a) 350 (b) 500 (c) 640 (d) 850

An assembly line can produce 80 units per hour. The line’s hourly cost is $4250 on straight time (the first 8 hours). Workers are guaranteed a minimum of 5 hours. There is a 35% premium for overtime, however, productivity for overtime drops by 10%. What are the average and marginal costs per unit for the following daily quantities? (a) 350 (b) 500 (c) 640 (d) 850

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

An assembly line can produce 80 units per hour. The line's hourly
cost is $4250 on straight time (the first 8 hours). Workers are
guaranteed a minimum of 5 hours. There is a 35% premium for
overtime, however, productivity for overtime drops by 10%. What are
the average and marginal costs per unit for the following daily
quantities?
(a) 350
(b) 500
(c) 640
(d) 850

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