Table 13-3

-Refer to Table 13-3.Each worker at Gallo's cork factory costs $12 per hour.The cost of each machine is $20 per day regardless of the number of corks produced.Assume the number of machines does not change.If Gallo's produces at a rate of 78 corks per hour,what is the total machine cost per day?

Question

Table 13-3
 
-Refer to Table 13-3.Each worker at Gallo's cork factory costs $12 per hour.The cost of each machine is $20 per day regardless of the number of corks produced.Assume the number of machines does not change.If Gallo's produces at a rate of 78 corks per hour,what is the total machine cost per day?

Quizplus · Accepted Answer

Since the cost of each machine is a fixed cost of $20 per day and the number of machines does not change, the total machine cost per day is always $20. The rate of production of 78 corks per hour does not affect the machine cost. Therefore, the correct answer is (B) $20.

Table 13-3 -Refer to Table 13-3.Each Worker at Gallo's Cork Factory Costs