A package delivery service currently has 12 vans and 16 employees. Vans cost $40

Question

A package delivery service currently has 12 vans and 16 employees. Vans cost $400 per week and employees earn $300 per week. The last van added 480 packages delivered to total output, while the last employee added 450 packages. The firm

a. is making the correct decision because the dollar expenditure ($4800) is equal for vans and employees.
b. should use more vans and fewer employees because the last van added 480 packages while the last employee only added 450 packages.

c. should use fewer vans and more employees because the last dollar spent on vans yielded 1.2 additional packages delivered, while the last dollar spent on employees yielded 1.5 packages delivered.

d. none of the above. A package delivery service currently has 12 vans and 16 employees. Vans cost $400 per week and employees earn $300 per week. The last van added 480 packages delivered to total output, while the last employee added 450 packages. The firm

is making the correct decision because the dollar expenditure ($4800) is equal for vans and employees.
should use more vans and fewer employees because the last van added 480 packages while the last employee only added 450 packages.

should use fewer vans and more employees because the last dollar spent on vans yielded 1.2 additional packages delivered, while the last dollar spent on employees yielded 1.5 packages delivered.

none of the above. a. is making the correct decision because the dollar expenditure ($4800) is equal for vans and employees.
b. should use more vans and fewer employees because the last van added 480 packages while the last employee only added 450 packages.

c. should use fewer vans and more employees because the last dollar spent on vans yielded 1.2 additional packages delivered, while the last dollar spent on employees yielded 1.5 packages delivered.

d. none of the above.

Explanation / Answer

should use fewer vans and more employees because the last dollar spent on vans yielded 1.2 additional packages delivered, while the last dollar spent on employees yielded 1.5 packages delivered. .c should use fewer vans and more employees because the last dollar spent on vans yielded 1.2 additional packages delivered, while the last dollar spent on employees yielded 1.5 packages delivered.

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