Suppose that you need 8,000 units of work (in capacity units) to be performed, and you can hire all the laborers that you want. assume that all income earned by the laborers is paid to them by you, and that all income is spent on nutrition. the capacity curve for each laborer is described as follows: for all payments up to $100, capacity is zero and then begins to rise by 2 units for every additional dollar paid. this happens until an income of $500 is paid out. thereafter, an additional dollar paid out increases capacity by only 1.1 units, until total income paid is $1000. at this point additional payments have no effect on work capacity. assume that you would like to get your work done at minimum cost. describe how many laborers you would hire to get your work done and how much you would pay each of them.

Costco wholesale corporation operates membership warehouses selling food, appliances, consumer electronics, apparel and other household goods at 471 locations across the u.s. as well as in canada, mexico and puerto rico. as of its fiscal year-end 2005, costco had approximately 21.2 million members. selected fiscal-year information from the company's balance sheets follows. ($ millions). selected balance sheet data 2005 2004 merchandise inventories $4,015 $3,644 deferred membership income (liability) 501 454 (a) during fiscal 2005, costco collected $1,120 cash for membership fees. use the financial statement effectstemplate to record the cash collected for membership fees. (b) in 2005, costco recorded $46,347 million in merchandise costs (that is, cost of goods sold). record thistransaction in the financial statement effects template. (c) determine the value of merchandise that costco purchased during fiscal-year 2005. use the financial statementeffects template to record these merchandise purchases. assume all of costco's purchases are on credit.