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.
Table depicting Total Donations, Average Donations, Total Labor Costs, and Average Labor Costs for varying numbers of employees at State U.Complete the following:

  • 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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