Question

A copy company wants to expand production. It currently has 20 workers who share eight copiers. Two months ago, the firm added two copiers and output increased by 100,000 pages per day. One month ago, they added five workers and productivity also increased by 50,000 pages per day. Copiers cost about twice as much as workers. Would you recommend they hire another employee or buy another copier?

Answer 1

Answer:

Another Copier

Explanation:

Based on the information provided I would recommend that the company buy another copier as it provides the greatest benefit for the cost. For example, five workers are able to increase production by 50,000 pages per day. This means that 1 worker increases production by 10,000 pages per day, while one copier increases production by 50,000 per day.

Now 1 copier is worth 2 workers (double what a single worker costs), but two workers only increase production by 20,000 pages per day which is still 30,000 pages less per day than the copier. Therefore, the copier would provide the greatest benefit to the company.