A firm wishes to shut down an office and fire 100 employees. The company will sa

Question

A firm wishes to shut down an office and fire 100 employees. The company will save $3000 per month per employee. It is estimated that each employee contributes $4,100 to the company. The firm rents office space for this group of employees at $1500. What should the company do?

Fire the employees and save $1500 on rent

Not fire the employees keeping them generates a profit of $1100 per employee

Not fire the employees since keeping them generates a profit of $1085 per employee

None of the above

Fire the employees and save $1500 on rent

Not fire the employees keeping them generates a profit of $1100 per employee

Not fire the employees since keeping them generates a profit of $1085 per employee

None of the above

Explanation / Answer

Option c is correct because the net benefit created by the empolyee 408500 .therefore per empolyee will contribute $ 1085 as a profit.

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