It costs Menands Meals for the Homebound (MMH) $4.50 in food and packaging costs to produce and deliver a meal
That is their only variable cost. They are currently producing as many meals as they can with their current staff but want to expand. If they hire one more cook at a cost of $20,000 per year, they can expand their capacity by 24,000 meals per year. What will MMH's marginal cost be for producing 24,000 additional meals?
MC = VC + change in VC + change in FC = change in TC
= 4.50 * 24,000 + 20,000 = 108,000 + 20,000 = $128,000
You might also like to view...
Content and process can be contrasted in that _____
a. process emphasizes the correctness of a group decision and content emphasizes the physical location of the group when the decision was made b. process is when the group does their work and content is what the group does c. content is specific information about a group and process is general information d. content is the process of group behavior e. content is what a group does and process is the how the group does their work
The Dodd-Frank Act authorizes the Federal Trade Commission to create a whistleblower program to encourage individuals to provide the SEC with information that would lead to the discovery and prosecution of violations of the federal securities laws
Indicate whether the statement is true or false