Hamburger Co has determined that their lowest total cost production technology is $460. If machines cost $100 and workers cost $40 what number of workers produces this cost of production, assuming Hamburger Co has already determined it will purchase 3 machines?

Question

Business

Valeria Ray

19 February, 17:25

Hamburger Co has determined that their lowest total cost production technology is $460. If machines cost $100 and workers cost $40 what number of workers produces this cost of production, assuming Hamburger Co has already determined it will purchase 3 machines?

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Lyons · Answer 1

4 workers

Explanation:

The cost that Hamburger Co can incur at this time is $460.

When producing the total cost is equal to fixed cost less variable cost.

Fixed cost includes nonmoveable assets that assist in production, such as machinery. The cost is fixed.

Variable costs are those costs that change in the course of production and can be varied depending on need.

Total cost = Fixed cost + variable cost

460 = (3*100) + variable cost

Variable cost = 460 - 300 = $160

Number of worker = Variable cost / cost of each worker

Number of worker = 160/40 = 4 workers