Cindy is a baker and runs a large cupcake shop. She has already hired 11 employees and is thinking of hiring a 12th. Cindy estimates that a 12th worker would cost her $100 per day in wages and benefits while increasing her total revenue from $2,600 per day to $2,750 per day. Should Cindy hire a 12th worker?A. YesB. NoC. You need more information to figure this outAll work must be shown for credit.

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19-12-2022
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Cindy is a baker and runs a large cupcake shop. She has already hired 11 employees and is thinking of hiring a 12th. Cindy estimates that a 12th worker would cost her $100 per day in wages and benefits while increasing her total revenue from $2,600 per day to $2,750 per day. Should Cindy hire a 12th worker?A. YesB. NoC. You need more information to figure this outAll work must be shown for credit.

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smecloudbird18 smecloudbird18 · Answer 1 · 2022-12-25T05:07:05+01:00

She has already hired 11 employees and is thinking of hiring a 12th. Cindy estimates that a 12th worker would cost her $100 per day in wages and benefits while increasing her total revenue from $2,600 per day to $2,750 per day. Cindy should hire a 12th worker.

Since, addition of one more worker will increase Cindy's cost by $100 but on the other hand the overall increase in profits will be $2750-$2600= $150 out of which after paying off the additional worker Cindy will still left with $50 profit.

Profit is the term used to describe the financial gain experienced when the revenue from a commercial activity exceeds the costs, costs, and taxes associated with maintaining that activity.

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