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We R' Write has collected some cost information for you regarding the production of pens. In the table below, you are provided with the total output of pens per day corresponding to different levels of labor. You are also provided with the price of labor per day, the total fixed costs per day, and the price per pen.

• Currently, We R' Write is using 75 employees on the production line. Is this level producing maximum profits? How did you determine this answer?
• What is the level of profit made when 90 workers are used per day to produce pens? How did you determine this?
• Should We R' Write continue to produce or temporarily shut down in the short run, if 12,000 pens are produced per day? Why, or why not?
• At what level of output and workers used are profits maximized? Identify two ways you can find this maximum profit using the information in the table below.

Round these answers to the nearest whole number Round these answers to the nearest penny

Output

(Pens

Produced)

Number of

Workers

Employed

per Day Price of

Labor

per

Worker

per Day

Total

Variable

Cost of

Labor

Total

Fixed

Costs

per Day

Total

Cost per

Day

Price per

Pen

Total

Revenue

Profit

Average

Variable

Cost

Average

Fixed

Cost

Average

Total

Cost

Marginal

Cost

Marginal

Revenue 0 0 $560 $0.00 $500 $500 $3.50 $0.00 -$500 --- --- --- --- --- 1,000 15 $560 $8,400 $500 $8,900 $3.50 $3,500 -$5,400 $8.40 $0.50 $8.90 $8.40 $3.50 2,700 30 $560 $16,800 $500 $17,300 $3.50 $9,450 -$7,850 $6.22 $0.19 $6.41 $4.94 $3.50 5,100 45 $560 $25,200 $500 $25,700 $3.50 $17,850 -$7,850 $4.94 $0.10 $5.04 $3.50 $3.50 7,900 60 $560 $33,600 $500 $34,100 $3.50 $27,650 -$6,450 $4.25 $0.06 $4.32 $3.00 $3.50 12,000 75 $560 $42,000 $500 $42,500 $3.50 $42,000 -$500 $3.50 $0.04 $3.54 $2.05 $3.50 15,700 90 $560 $50,400 $500 $50,900 $3.50 $54,950 $4,050 $3.21 $0.03 $3.24 $2.27 $3.50 18,100 105 $560 $58,800 $500 $59,300 $3.50 $63,350 $4,050 $3.25 $0.02 $3.28 $3.50 $3.50 20,300 120 $560 $67,200 $500 $67,700 $3.50 $71,050 $3,350 $3.31 $0.02 $3.33 $3.82 $3.50 21,900 135 $560 $75,600 $500 $76,100 $3.50 $76,650 $550 $3.45 $0.02 $3.47 $5.25 $3.50 22,300 150 $560 $84,000 $500 $84,500 $3.50 $78,050 -$6,450 $3.77 $0.02 $3.79 $21.00 $3.50 22,300 165 $560 $92,400 $500 $92,900 $3.50 $78,050 -$14,850 $4.14 $0.02 $4.17 $0.00 $3.50 21,500 180 $560 $100,800 $500 $101,300 $3.50 $75,250 -$26,050 $4.69 $0.02 $4.71 $-10.50 $3.50

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