Todd owns a painting company. He needs brushes, ladders, paint, painters, and a truck in order to produce even one painted house. If it takes one hour to set up and take down the equipment each day, would Todd care if his employees worked an 8-hour day or a 10- hour day, assuming that each hour they painted just as quickly as the previous hour?
A) no; the revenue and costs are the same every hour
B) no; especially if he pays his employees by the hour
C) there is no way to answer this question
D) yes; because he can reduce the average fixed cost of preparation and clean-up
E) yes; but only if the homeowner pays by the hour

Question

Quizplus · Accepted Answer

Todd would care about the length of the workday because the one-hour setup and take-down time is a fixed cost each day. By extending the workday from 8 to 10 hours, the average fixed cost of preparation and clean-up per hour of actual painting decreases, making each hour of painting marginally more profitable.

Todd Owns a Painting Company