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Your Accountant Calculated That Your Factory Requires a Minimum Staff

Question 291

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Your accountant calculated that your factory requires a minimum staff of 50 workers to continue operations. If each worker is paid $100 per day; the cost of raw materials is $1,000 per day; and expected sales are $5,500 per day, what is the optimal (profit-maximizing or loss-minimizing) course of action to take? Explain why you do not need to know the value of your fixed costs to wer this question.

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Daily variable costs are $6,000 (labor p...

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