The Box Shop, Inc Produces Corrugated Boxes for the Do-It-Yourself

Essay

The Box Shop, Inc produces corrugated boxes for the do-it-yourself moving market. It wholesales these boxes to firms such as Ryder and U-Haul and sells them only by the case. Revenue and labor productivity data for the most common size they sell are given in the following table. The price shown is for a case of this size box. The component cost per case is $.50. The wage rate is constant at $4.50 per hour.
a. Complete the table.
b. How many workers should the Box Shop employ? Why?
c. How much output should the Box Shop produce and what price should they charge?