A manager in charge of new product development can hire engineers and market res

Question

A manager in charge of new product development can hire engineers and market researchers. The annual salary of an engineer is $30,000 and that of a market researcher is $20,000. The marginal contribution of engineers and market researchers are

Engineers (E) Market Researchers (R)

Worker Additional New Products Worker Additional New Products

1st 50 1st 30

2nd 30 2nd 25

3rd 15 3rd 20

4th 10 4th 15

5th 8 5th 10

If the manager has an annual budget of $120,000, how should this budget be allocated in order to maximize the number of new products developed?

Answer

Hire two engineers and one market researcher.

Hire two engineers and three market researchers.

Hire three engineers and two market researchers.

Hire three engineers and four market researchers.

Explanation / Answer

Hire two engineers and three market researchers

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