2. The table below shows how total donations, average donations, total labor cos

Question

2. The table below shows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees GW hires for its fundraising activities # of Employees | Total Donations | Average Donations | Total Labor | Average Labor per employee) Costs $8,000 Costs S30,000 $42,426 $17,000 $27,000 $17,321 60,000 $9,500 $13,416 $50,000 a. Please fill out empty cells in the table above. (1 point) b. The head of alumni relations at GW decides to hire fundraising employees as long as their average benefit exceeds their average cost. According to the table above, how many employees should be hired and what is the net benefit (total donations less total labor costs) to the university? (2 points) Did the head of alumni relations make the right number of hires? What should he have done instead? Please explain. (2 points) c.

Explanation / Answer

For every number of employees Average benefits exceed average costs hence 5 number of workers should be hired as AB> AC

He may have hired only 2 workers as net benefits is higher for the society when 2 people gets hired.

No of Employees Total Donations Average Donations Total Labor Costs Average Labor Costs Net Benefits 1 30000 30000 8000 8000 22000 2 42426 21213 17000 8500 25426 3 51963 17321 27000 9000 24963 4 60000 15000 38000 9500 22000 5 67080 13416 50000 10000 17080

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