The Paducah Slugger Company makes baseball bats out of lumber supplied to it by Acme Sporting Goods, which pays Paducah $10 for each finished bat. Paducah’s only factors of production are lathe operators and a small building with a lathe. The number of bats per day it produces depends on the number of employee-hours per day, as shown in the table below. LO3, LO4

a. If the wage is $15 per hour and Paducah’s daily fixed cost for the lathe and building is $60, what is the profit-maximizing quantity of bats?

b. What would be the profit-maximizing number of bats if the firm’s fixed cost were not $60 per day but only $30?256