Joe Fixit has an appliance- repair business. He has more business than he can handle and wants
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Question:
Joe Fixit has an appliance- repair business. He has more business than he can handle and wants to hire another person. Joe estimates that three appliances can be repaired each hour by a qualified person. Joe bills out labor at $45 per hour, but he stipulates that the minimum charge for appliance - repair estimates is $30 plus parts. What is the marginal revenue product of a qualified repair person? What is the maximum hourly wage that he would pay an employee?
Also, Does the $30 plus parts have anything to do with hourly rate?
Related Book For
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1111534912
8th edition
Authors: Gary A. Porter, Curtis L. Norton
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