A property title search firm is contemplating using online software to increase

Question

A property title search firm is contemplating using online software to increase its search productivity. Currently an average of 50 minutes is needed to do a title search. The researcher cost is $2.20 per minute. Clients are charged a fee of $470. Company A's software would reduce the average search time by 8 minutes, at a cost of $3.10 per search. Company B's software would reduce the average search time by 12 minutes at a cost of $5.10 per search. a Calculate the productivity in terms of revenue per dollar of input. (Round your intermediate calculations and final answers to 2 decimal places. Omit the "$" sign in your response.) (Revenue per Dollar Input) $ 4.27 Approach Current Company A Company B Which option would have the highest productivity in terms of revenue per dollar of input? b. Company A Company B Current

Explanation / Answer

>Current

Dollars of input = 50*2.2 = $110

Revenue = $470

Productivity = 470/110 = 4.27

>Company A

Dollars of input = 42*2.2+3.10 = $95.5

Revenue = $470

Productivity = 470/95.5 = 4.92

>Company B

Dollars of input = 38*2.2+5.1 = $88.7

Revenue = $470

Productivity = 470/88.7 = 5.3

(b)

Company B has the highest productivity

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