Suppose that a delivery company current uses one employee per vehicle to deliver

Question

Suppose that a delivery company current uses one employee per vehicle to deliver packages. Each driver delivers 50 packages per day, and the firm charges $20 per package for delivery.

d. Suppose that the number of packages delievered per day cannot be increased but the price per delievery might potentially be raised. What price per delievery would the frim have to charge for each delievery in order to maintain the firms profit per vehicle after supervisors are added?

Note: One supervisor per car at 300 USD per day.

Explanation / Answer

300 t osupervisor so charge of 300/50 = $6 per package would yield no loss so price per delievery would the frim have to charge for each delievery in order to maintain the firms profit per vehicle after supervisors are added is $26

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