The manager of a medical lab is considering adding another technician to his team in an effort
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Question:
The manager of a medical lab is considering adding another technician to his team in an effort to increase the lab's daily hours of operation. If the technician's monthly salary is $4,000, the lab receives an hourly revenue of $50 revenue and has variable costs of $15/hour, how many hours must the new technician work for the owner to break even?
If the technician agreed to work 120 hours, the variable costs remain unchanged and revenue is uncertain with a 40% chance of being $40/hour, 35% chance of being $20/hour, and 25% chance of being $35/hour should the technician be hired? Yes or no?
Related Book For
Cornerstones of Cost Management
ISBN: 978-1111824402
2nd edition
Authors: Don R. Hansen, Maryanne M. Mowen
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