The table below shows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees State U hires for its fundraising activities. The President of State U decides to hire fundraising employees as long as their average benefit exceeds their average cost. This results in ______ employees being hired and a net benefit (total donations minus total labor costs) of ______.

Question

The table below shows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees State U hires for its fundraising activities.  The President of State U decides to hire fundraising employees as long as their average benefit exceeds their average cost. This results in ______ employees being hired and a net benefit (total donations minus total labor costs) of ______.

Quizplus · Accepted Answer

Average benefit exceeds average costs for all 5 employees, so 5 employees will be hired. With 5 employees, total donations are $67,080 and total costs are $50,000, so the net benefit is $17,080 (= $67,080 - $50,000).

The Table Below Shows How Total Donations, Average Donations, Total