A property title search firm is contemplating using online software to increase its search productivity. Currently an average of 40 minutes is needed to do a title search. The researcher cost is $2 perminute. Clients are charged a fee of $400. Company A’s software would reduce the average searchtime by 10 minutes, at a cost of $3.50 per search. Company B’s software would reduce the averagesearch time by 12 minutes at a cost of $3.60 per search. Which option would have the higher productivity in terms of revenue per dollar of input?
A property title search firm is contemplating using online software to increase its search productivity. Currently an average of 40 minutes is needed to do a title search. The researcher cost is $2 perminute. Clients are charged a fee of $400. Company A’s software would reduce the average searchtime by 10 minutes, at a cost of $3.50 per search. Company B’s software would reduce the averagesearch time by 12 minutes at a cost of $3.60 per search. Which option would have the higher productivity in terms of revenue per dollar of input?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A property title search firm is contemplating using online software to increase its search productivity. Currently an average of 40 minutes is needed to do a title search. The researcher cost is $2 per
minute. Clients are charged a fee of $400. Company A’s software would reduce the average search
time by 10 minutes, at a cost of $3.50 per search. Company B’s software would reduce the average
search time by 12 minutes at a cost of $3.60 per search. Which option would have the higher productivity in terms of revenue per dollar of input?
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