Assignment Content

1. 
   The accompanying table shows 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:
   

   Number of Employees	Total Donations	Marginal Benefit	Average Donations	Total Labor Costs	Marginal Cost	Average Labor Costs
   1	$30,000		$30,000	$8,000		$8,000
   2	$42,426	$12,426	$21,213	$17,000	$9,000	$8,500
   3	$51,963	$9,537	$17,321	$27,000	$10,000	$9,000
   4	$60,000	$8,037	$15,000	$38,000	$11,000	$9,500
   5	$67,080	$7,080	$13,416	$50,000	$12,000	$10,000

   
   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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