Suppose that a delivery company currently uses one employee per vehicle to deliver packages. Each driver delivers 30 packages per

day, and the firm charges $20 per package for delivery.

Instructions: Enter your answers as whole numbers.

a. What is the MRP per driver per day?

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b. Now suppose that a union forces the company to place a supervisor in each vehicle at a cost of $300 per supervisor per day. The

presence of the supervisor causes the number of packages delivered per vehicle per day to rise to 40 packages per day. What is the

MRP per supervisor per day?

References

By how much per vehicle per day do firm profits fall after supervisors are introduced?

c. How many packages per

2 Suppose that a car factory initially hires 1,600 workers at $20 per hour and that each worker works 40 hours per week. Then the factory unionizes, and the new union demands that wages be raised by 10 percent. The firm accedes to that request in collective bargaining negotiations but then decides to cut the factory's labor force by 20 percent due to the higher labor costs. Instructions: Enter your answers as whole numbers, a. What is the new union wage? nts eBook Print How many workers does the factory employ after the agreement goes into effect? References b. How much in total did the factory's workers receive in wage payments each week before the agreement? How much do the factory's remaining workers receive in wage payments each week after the agreement