Exhibit 10-11 Labor wage and cost data $$\begin{array} { | c | c | c | c | }
\hline \text { Labor } & \text { Wage } & \text { TWC } & \text { MFC } \
\hline 10 & \$ & \$ 50.00 & \$ \
\hline 11 & 5.80 & & \
\hline 12 & & & 17.80 \
\hline 13 & & 102.70 & \
\hline 14 & & 126.00 & \
\hline 15 & & & 46.50 \
\hline
\end{array}$$ In Exhibit 10-11, the total wage cost of hiring 12 employees is equal to:

Question

Exhibit 10-11 Labor wage and cost data $$\begin{array} { | c | c | c | c | } 
\hline \text { Labor } & \text { Wage } & \text { TWC } & \text { MFC } \
\hline 10 & \$ & \$ 50.00 & \$ \
\hline 11 & 5.80 & & \
\hline 12 & & & 17.80 \
\hline 13 & & 102.70 & \
\hline 14 & & 126.00 & \
\hline 15 & & & 46.50 \
\hline
\end{array}$$ In Exhibit 10-11, the total wage cost of hiring 12 employees is equal to:

Quizplus · Accepted Answer

The total wage cost (TWC) for hiring 12 employees can be calculated by adding the marginal factor cost (MFC) of hiring the 12th employee to the total wage cost of hiring 11 employees. The MFC for the 12th employee is $17.80. To find the TWC for 11 employees, we notice that the wage rate increases from $5 to $5.80 when the 11th employee is hired, which means the TWC for 10 employees was $50, and the additional cost for the 11th employee is $5.80, making the TWC for 11 employees $55.80. Adding the MFC of $17.80 for the 12th employee to the TWC of $55.80 for 11 employees gives us $73.60, which is not an option provided. However, the correct approach involves recognizing that the TWC for 11 employees is not directly given and must be calculated based on the available data. The correct calculation involves understanding the relationship between TWC, wage rates, and MFC, and it appears there was a mistake in the initial explanation. The correct TWC for 12 employees should be calculated by understanding the pattern or additional information provided in the question, which seems to have been misinterpreted in the initial response. Without the exact increments for each employee, we cannot accurately calculate the TWC for 11 employees just from the wage increase to $5.80. The correct answer relies on the information given and the correct interpretation of the data provided in the table.

Exhibit 10-11 Labor Wage and Cost Data In Exhibit 10-11, the Total Wage Cost of Hiring 12