C&A Toys uses two steps to make a toy. Step 1 takes 20 seconds. Step 2 takes 15 seconds. Each step is staffed by one worker, for a total of two workers. Assume labor costs are considered fixed and demand is unlimited. Each toy is sold for $20. Material costs are $5 per toy. Fixed costs are $500 per hour including the cost of labor. How much profit does C&A Toys make per hour?

Answer rating: 100% (QA)

To find the profit per hour we need to calculate the revenue per hour and the cost per ho... View the full answer