Q: Janice Waller, the manager of the customer service department at First Bank o
ID: 1201555 • Letter: Q
Question
Q:
Janice Waller, the manager of the customer service department at First Bank of Jefferson Country, can hire employees with high school diploma for $20,000 annually and employees with a bachelor’s degree for $30,000. She wants to maximize the number of customers served, given a fixed payroll. The following table shows how the total number of customers served varies with the number of employees:
Number of employees
Total number of customers served
High school diploma
Bachelor’s degree
1
120
100
2
220
190
3
300
270
4
370
330
5
430
380
6
470
410
a.If Mrs. Waller has a payroll of $160,000, how should she allocate this budget in order to maximize the number of customers served?
b.If she has a budget of $150,000 and currently hires three people with high school diplomas and three with bachelor’s degrees, is she making the correct decision? Why or why not? If not, what should she do?(Assume she can hire part-time workers.
c.If her budget is increased to $240,000, how should she allocate this budget?
Number of employees
Total number of customers served
High school diploma
Bachelor’s degree
1
120
100
2
220
190
3
300
270
4
370
330
5
430
380
6
470
410
Explanation / Answer
a. Mrs. Waller can allocate this budget in the following ways:
1. Hire 5 high school employees and 2 Bachelor's degree employees as (5X20,000 + 2X30,000 = $ 1,60,000) : 430 + 190 = 620
2. Hire 2 high school employees and 4 Bachelor's degree employees as (2X20,000 + 4X30,000 = $ 1,60,000) : 220 + 330 = 550
So, In order to maximise the number of customers served, Mrs. Waller has to hire 5 high school employees and 2 Bachelor's degree employees.
b. Yes her decision is correct because the maximum number of customer which can be served with budget of $ 150,000 is 570 whether the combination be (3H,3B), (6H,1B). If she hires all diploma employees then, she will be able to serve less number of customer i.e. 380. So, she takes the best decision.
c. If budget is $ 240,000 then she can allocate it in the following ways:
1. 6 High school employees + 4 Bachelor's degree : 470 + 330 = 800
2. 3 High school employees + 6 Bachelor's degree : 300 + 410 = 710
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