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. $$\begin{array} { | c | c | c | c | c | }
\hline \begin{array} { c }
\text { Number of } \
\text { Employees }
\end{array} & \begin{array} { c }
\text { Total } \
\text { Donations }
\end{array} & \begin{array} { c }
\text { Average } \
\text { Donations }
\end{array} & \begin{array} { c }
\text { Total } \
\text { Labor Costs }
\end{array} & \begin{array} { c }
\text { Average } \
\text { Labor Costs }
\end{array} \
\hline 1 & \$ 30,000 & & & \$ 8,000 \
\hline 2 & \$ 42,426 & & \$ 17,000 & \
\hline 3 & & \$ 17,321 & \$ 27,000 & \
\hline 4 & \$ 60,000 & & & \$ 9,500 \
\hline 5 & & \$ 13,416 & \$ 50,000 & \
\hline
\end{array}$$ 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. $$\begin{array} { | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Number of } \
\text { Employees }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Donations }
\end{array} & \begin{array} { c } 
\text { Average } \
\text { Donations }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Labor Costs }
\end{array} & \begin{array} { c } 
\text { Average } \
\text { Labor Costs }
\end{array} \
\hline 1 & \$ 30,000 & & & \$ 8,000 \
\hline 2 & \$ 42,426 & & \$ 17,000 & \
\hline 3 & & \$ 17,321 & \$ 27,000 & \
\hline 4 & \$ 60,000 & & & \$ 9,500 \
\hline 5 & & \$ 13,416 & \$ 50,000 & \
\hline
\end{array}$$ 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

The correct answer is A. The average benefit of an employee is the average donation minus the average labor cost. For 1 employee, the average benefit is $30,000 - $8,000 = $22,000. For 2 employees, the average benefit is $42,426 - $17,000 = $25,426. For 3 employees, the average benefit is $17,321 - $27,000 = -$9,679. For 4 employees, the average benefit is $60,000 - $9,500 = $50,500. For 5 employees, the average benefit is $13,416 - $50,000 = -$36,584. Therefore, the President of State U should hire 4 employees, which results in a net benefit of $60,000 - $9,500 = $50,500.

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