Theaccompanying tableshows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees State U hires for its fundraising activities. Co
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Theaccompanying tableshows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees State U hires for its fundraising activities.
Complete
the following:
- Calculate the total value of donations raised by three employees, and explain the method you used to make this calculation.
- Calculate the total labor cost with four employees, and explain the method you used to make this calculation.
- Analyze the relationship between average benefits and average costs by filling in the blanks in the following statement:
- If the President of State U decides to hire fundraising employees as long as their average benefit exceeds their average cost, then this results in ________ employees being hired and a net benefit (total donations minus total labor costs) of ________.
- Evaluate the marginal benefit (in terms of extra donations) of the 2nd employee.
- Explain how the marginal cost of the 4th employee will increase the total labor cost.
- Determine when the net benefit of hiring fundraisers is the largest.
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