runs a landscape business. He knows that providinglandscaping services costs him $100 per hour on average, whilethe cost of providing such services is $150 per hour after 5 PM(due to overtime pay, reduced productivity, and the added wearand tear on his equipment) . A potential client offers Joe $130per hour to provide services but needs him to provide theservices after 5PM due to circumstances at the property.
A) Joe should take the job, since $130 exceeds his average cost of production.
B) Joe should take the job, since he is making a $30 profit per hour.
C) Joe should decline the job, since he would lose $150 per hour worked on the job.
D) Joe should decline the job, since he would lose $20 per hour worked.
Correct Answer:
Verified
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