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Karen is a trusted employee whose productivity declines as she works more and mo

ID: 2757054 • Letter: K

Question

Karen is a trusted employee whose productivity declines as she works more and more hours each day. After careful observation of her work performance, her manager prepared the following chart.

Daily Number of Hours Worked by Karen / Total Numbers of Work Units Completed
1/100
2/190
3/270
4/340
5/400
6/450
7/480
8/500

Karen's total cost to the firm is $11 per hour. Each work unit completed is worth $0.21 to the firm. Ignoring all other possibilities and considerations, for how many hours should the firm hire Karen per day?
Hours

Explanation / Answer

A

B

C=A x $11 per hr

D= no of units produced X worth per unit

E=D-C

Hours

Units Produced

Total Cost

Worth for the Firm

Benefit

1

100

11

21.00

10.00

2

190

22

39.90

17.90

3

270

33

56.70

23.70

4

340

44

71.40

27.40

5

400

55

84.00

29.00

More benefit

6

450

66

94.50

28.50

7

480

77

100.80

23.80

8

500

88

105.00

17.00

5 Hrs.As the benefit is more at 5 hrs .

A

B

C=A x $11 per hr

D= no of units produced X worth per unit

E=D-C

Hours

Units Produced

Total Cost

Worth for the Firm

Benefit

1

100

11

21.00

10.00

2

190

22

39.90

17.90

3

270

33

56.70

23.70

4

340

44

71.40

27.40

5

400

55

84.00

29.00

More benefit

6

450

66

94.50

28.50

7

480

77

100.80

23.80

8

500

88

105.00

17.00