Table 13-4
Gallo Cork Factory

-Refer to Table 13-4.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.What is the total daily cost of producing at a rate of 55 units per hour if Gallo's operates 8 hours per day?

Question

Table 13-4
Gallo Cork Factory
 
-Refer to Table 13-4.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.What is the total daily cost of producing at a rate of 55 units per hour if Gallo's operates 8 hours per day?

Quizplus · Accepted Answer

The cost of workers is given by: 
$12/hour x 8 hours/day = $96/day

The cost of machines is given by: 
$20/day

The total cost per day is: 
($96/day + $20/day) x 55 units/hour x 8 hours/day 
= $520/day

Therefore, the best choice is C.

Table 13-4 Gallo Cork Factory