Among other products, C&A sells T-shirts for $15 each. Material costs are $2 per shirt and fixed costs are $300 per hour. C&A currently employs two workers, each of whom takes two minutes to make one shirt. Assume demand is unlimited. What will be the impact on C&A’s profit per hour for shirts if one additional worker is moved from elsewhere in the company to make shirts? Assume the new worker also takes two minutes to make one shirt. The wage rate is $15 per hour.
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