A truck manufacturer can produce one more truck if it hires another employee for $40,000. It can also produce one more truck if it buys $50,000 worth of machinery. A truck sells on the market for $60,000. The truck manufacturer should a. Hire emnlovees until tho 00

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 6EB: Country Diner currently makes cookies for its boxed lunches. It uses 40,000 cookies annually in the...
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A truck manufacturer can produce one more
truck if it hires another employee for $40,000.
It can also produce one more truck if it buys
$50,000 worth of machinery. A truck sells on
the market for $60,000. The truck
manufacturer should
a. Hire employees until the cost of the
next employee equals the cost of
buying machinery to produce another
truck
b. Buy machinery until the cost of buying
machinery to produce another car
equals the cost of hiring another
employee
С.
Sell machinery and lay off employees
d. Lay off employees and buy machinery
e.
None of the above
Transcribed Image Text:A truck manufacturer can produce one more truck if it hires another employee for $40,000. It can also produce one more truck if it buys $50,000 worth of machinery. A truck sells on the market for $60,000. The truck manufacturer should a. Hire employees until the cost of the next employee equals the cost of buying machinery to produce another truck b. Buy machinery until the cost of buying machinery to produce another car equals the cost of hiring another employee С. Sell machinery and lay off employees d. Lay off employees and buy machinery e. None of the above
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