Karen is a trusted employee whose productivity declines as she works more and mo
ID: 2757054 • Letter: K
Question
Karen is a trusted employee whose productivity declines as she works more and more hours each day. After careful observation of her work performance, her manager prepared the following chart.
Daily Number of Hours Worked by Karen / Total Numbers of Work Units Completed
1/100
2/190
3/270
4/340
5/400
6/450
7/480
8/500
Karen's total cost to the firm is $11 per hour. Each work unit completed is worth $0.21 to the firm. Ignoring all other possibilities and considerations, for how many hours should the firm hire Karen per day?
Hours
Explanation / Answer
A
B
C=A x $11 per hr
D= no of units produced X worth per unit
E=D-C
Hours
Units Produced
Total Cost
Worth for the Firm
Benefit
1
100
11
21.00
10.00
2
190
22
39.90
17.90
3
270
33
56.70
23.70
4
340
44
71.40
27.40
5
400
55
84.00
29.00
More benefit
6
450
66
94.50
28.50
7
480
77
100.80
23.80
8
500
88
105.00
17.00
5 Hrs.As the benefit is more at 5 hrs .
A
B
C=A x $11 per hr
D= no of units produced X worth per unit
E=D-C
Hours
Units Produced
Total Cost
Worth for the Firm
Benefit
1
100
11
21.00
10.00
2
190
22
39.90
17.90
3
270
33
56.70
23.70
4
340
44
71.40
27.40
5
400
55
84.00
29.00
More benefit
6
450
66
94.50
28.50
7
480
77
100.80
23.80
8
500
88
105.00
17.00
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