A property title search firm is contemplating using online software to increase
ID: 3203614 • Letter: A
Question
A property title search firm is contemplating using online software to increase its search productivity. Currently an average of 40 minutes is needed to do a title search. The researcher cost is $2 per minute. Clients are charged a fee of $400. Company A's software would reduce the average search time by 10 minutes, at a cost of $3.50 per search. Company B's software would reduce the average search time by 12 minutes at a cost of $3.60 per search. Which option would have the higher productivity in terms of revenue per dollar of input?
A property title search firm is contemplating using online software to increase its search productivity. Currently an average of 40 minutes is needed to do a title search. The researcher cost is $2 per minute. Clients are charged a fee of $400. Company A's software would reduce the average search time by 10 minutes, at a cost of $3.50 per search. Company B's software would reduce the average search time by 12 minutes at a cost of $3.60 per search. Which option would have the higher productivity in terms of revenue per dollar of input?
A property title search firm is contemplating using online software to increase its search productivity. Currently an average of 40 minutes is needed to do a title search. The researcher cost is $2 per minute. Clients are charged a fee of $400. Company A's software would reduce the average search time by 10 minutes, at a cost of $3.50 per search. Company B's software would reduce the average search time by 12 minutes at a cost of $3.60 per search. Which option would have the higher productivity in terms of revenue per dollar of input?Explanation / Answer
Option
Average time
Cost
Productivity (per $ input)
Present
40
40 x $2 = $80
$400/$80 = $5
Company – A
30
30 x $2 + $3.50 = $63.50
$400/$63.50 = $6.30
Company – B
28
28 x $2 + $3.60 = $59.60
$400/$59.60 = $6.71
Option
Average time
Cost
Productivity (per $ input)
Present
40
40 x $2 = $80
$400/$80 = $5
Company – A
30
30 x $2 + $3.50 = $63.50
$400/$63.50 = $6.30
Company – B
28
28 x $2 + $3.60 = $59.60
$400/$59.60 = $6.71
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.