Upon opening a printing and copy shop, a firm budgets $40,000 for copy machines and labor. If the price of labor is $15 per hour, how many hours of labor can the firm hire if it spends nothing on machines?
A) 3/4 hour
B) 75 hours
C) 2,667 hours
D) 20,000 hours
E) 300,000 hours

Question

Quizplus · Accepted Answer

Since $40,000 is allocated for copy machines and labor, we know that the entire $40,000 will be used for labor if nothing is spent on the machines. Therefore, we can divide $40,000 by the hourly rate of $15 per hour to find the number of hours of labor that can be hired:

$40,000 / $15 per hour = 2,667 hours

Therefore, the firm can hire 2,667 hours of labor if it spends nothing on machines.

Upon Opening a Printing and Copy Shop, a Firm Budgets