Scenario: In 2010, Bozone had fifteen full-time (40 hours per week) employees and brewed 10 million cans of beer in 300 business days. Bozone paid each employee $15 per hour. In 2015, production increased to 20 million cans, and five new employees were hired. A new policy allowed employees to take the day off if it is a powder day at Bridger ski resort.
-Refer to the scenario above.Assume there were no powder days in 2015.What can you say about the standard of living of an employee at Bozone in 2015 compared to an employee at Bozone in 2010?
A) Income per worker increased by 10 percent if Bozone paid each employee $15 per hour.
B) Standard of living remained the same if Bozone spent $3.6 million on wages.
C) Income per worker decreased by 10 percent if Bozone spend $2.7 million on wages.
D) Income per worker increased by 10 percent if Bozone paid each employee $20 per hour.

Question

Quizplus · Accepted Answer

The standard of living remained the same since there were no powder days in 2015, meaning the new policy did not affect the wages earned by the employees. Bozone spent $3.6 million on wages ($15 per hour x 40 hours per week x 20 employees x 300 business days), which is the same amount they spent in 2010 ($15 per hour x 40 hours per week x 15 employees x 300 business days).

Scenario: in 2010, Bozone Had Fifteen Full-Time (40 Hours Per