3. Kristen's - Production Economics Labor rate is $12/hour, or $0.20/minute. Pay only for the labor minutes that are productive. L. For order sizes of 1 dozen, 2 dozen, and 3 dozen, calculate: labor content (minutes per order) labor cost ($ per order) materials cost ($ per order) variable cost = labor cost + materials cost ($ per order) variable cost ($ per dozen) Summarize your calculations in the table below. Please show your work. Order Size dozen Labor Content min/order Labor Cost $order Materials Cost $/order Variable Cost $/order Variable Cost $/dozen 1 8+ 4 = 12 12 x 0.2 = 2.40 .60 + 10 = .70 2.40+.70 = 3.10 $3.10 2 3 M. What happens to Variable Cost as order size increases? What happens to profit per dozen as order size increases? N. From a "business perspective", what might you do to encourage customers to make orders that are more profitable? 3. Kristen's - Production Economics Labor rate is $12/hour, or $0.20/minute. Pay only for the labor minutes that are productive. L. For order sizes of 1 dozen, 2 dozen, and 3 dozen, calculate: labor content (minutes per order) labor cost ($ per order) materials cost ($ per order) variable cost = labor cost + materials cost ($ per order) variable cost ($ per dozen) Summarize your calculations in the table below. Please show your work. Order Size dozen Labor Content min/order Labor Cost $order Materials Cost $/order Variable Cost $/order Variable Cost $/dozen 1 8+ 4 = 12 12 x 0.2 = 2.40 .60 + 10 = .70 2.40+.70 = 3.10 $3.10 2 3 M. What happens to Variable Cost as order size increases? What happens to profit per dozen as order size increases? N. From a "business perspective", what might you do to encourage customers to make orders that are more profitable