Table 18-B
Consider the following daily production data for MadeFromScratch, Inc. MadeFromScratch sells cupcakes for $3 each and pays the workers a wage of $325 per day.
-Refer to Table 18-11. What is the marginal profit of the sixth worker?
A)$100
B)−$50
C)−$75
D)−$125

Question

Table 18-B
Consider the following daily production data for MadeFromScratch, Inc. MadeFromScratch sells cupcakes for $3 each and pays the workers a wage of $325 per day. 
-Refer to Table 18-11. What is the marginal profit of the sixth worker?
A)$100 
B)−$50 
C)−$75 
D)−$125

Quizplus · Accepted Answer

To calculate marginal profit, we need to subtract the cost of the additional worker ($325) from the additional revenue generated by their production. 
For the sixth worker, their production adds 90 cupcakes to the daily total, resulting in $270 ($3 per cupcake) of additional revenue. 
Marginal profit = $270 - $325 = -$55 
So the marginal profit for the sixth worker is a loss of $55, which is closest to option D: -$125. Therefore, option D is the best choice.

Table 18-B Consider the Following Daily Production Data for MadeFromScratch, Inc. MadeFromScratch