2. Mark works for Maple Feel Inc., which exports maple syrup to Hungary. Current

Question

2. Mark works for Maple Feel Inc., which exports maple syrup to Hungary. Currently, he generates $45,000 a year of net revenues for the firm and his salary is $45,000 per year. Mark is planning to hire a private teacher to learn some Hungarian. His only cost would be the teacher's fee of $60 per hour. Mark knows that if he devotes H hours to the study of the Hungarian language, his ability to generate revenues from sales in Hungary will increase to $45,000 S1,200H2 per year. Mark will retire after one more year of working. a) 6 pts Suppose there are many similar companies trying to export goods to Hungary and in each of them Mark's knowledge of the Hungarian language would be equally useful as in Maple Feel How many hours will he devote to learning Hungarian? Now suppose that Maple Feel is the only company in which Mark's knowledge of Hungarian could be useful and that Mark's bargaining power is such that he could negotiate a wage increase equal to 25% of the gains from his increased productivity b) 4 pts How many hours will Mark devote to learning Hungarian if he bears the full cost of his study?

Explanation / Answer

Hi,

Ananswer A ) : Total Cost of Company $45000.

Earning Capacity $1200 H1/2 Per Year.

so for one hrs for year 1200 * 2 = 2400.

and for making $45000 Revenus =45000/2400 =18.75 hrs.

He need a 18.75 Hrs for learned Hungaring.

Answer B)

Mark Salary of $45000 per year.

So for one day salary of $45000/365 = $123.2877 and one hrs cost is = $5.1369 .

One hrs study fees =$60 per hrs so one days cost he will be bears $60/5.1369 =$11.68.

Answere C) his per days hrs =18.75 * $60 = $1125 fees will be paid by the company .

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.