Jane is a tax accountant. She receives $200 per hour for preparing tax returns.

Question

Jane is a tax accountant. She receives $200 per hour for preparing tax returns. She can type 4000 characters per hour into spreadsheets. She can hire an assistant who types 1000 characters per hour into spreadsheets. Which one of the following statements is the best recommendation? a. Jane should not hire an assistant because the assistant cannot type as fast as she can. Jane should hire the assistant as long as she pays the assistant less than $200 per hour , b c. Jane should hire the assistant as long as she pays the assistant less than $100 er hour. d. Jane should hire the assistant as long as she pays the assistant less than $50 per hour.

Explanation / Answer

Answer : Option D is correct because as per situation Jane should hire the assistant as long as she pay the assistant less than $50 per hour because as per situation Jane type 4000 character where as assistant type 1000 character . This shows that if Jane does not type than she files a return at $200 per hour. So it means efficiency of assistant is 1/4th of the Jane. So Jane should pay assistant $50 or less than to its assistant.

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