The accompanying table below shows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees State U hires for its fundraising activities.
The President of State U decides to hire fundraising employees as long as their average benefit exceeds their average cost. This results in ________ employees being hired and a net benefit (total donations minus total labor costs)of ________.
A)5; $17,080
B)5; $67,080
C)4; $60,000
D)4; $22,000

Question

The accompanying table below shows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees State U hires for its fundraising activities.    
The President of State U decides to hire fundraising employees as long as their average benefit exceeds their average cost. This results in ________ employees being hired and a net benefit (total donations minus total labor costs)of ________. 
A)5; $17,080 
B)5; $67,080 
C)4; $60,000 
D)4; $22,000

Quizplus · Accepted Answer

Average benefit exceeds average costs for all 5 employees, so 5 employees will be hired. With 5 employees, total donations are $67,080 and total costs are $50,000, so the net benefit is $17,080 (= $67,080 - $50,000).

The Accompanying Table Below Shows How Total Donations, Average Donations, Total