Answer:
Current = 5.00
Company A = 6.30
Company B = 6.71
The company B would have the highest productivity in terms of revenue per dollar of input, that is 6.71.
Explanation:
Current:
Average time = 40 minutes
Cost = 40 minutes x $2 = $80
Productivity (Revenue per $ input) = $400 / $80 = 5.00
Company A:
Average time = 40 - 10 = 30 minutes
Cost = (30 minutes x $2) + $3.50 = $60 + $3.50 = $63.50
Productivity (Revenue per $ input) = $400 / $63.50 = 6.30
Company B:
Average time = 40 - 12 = 28 minutes
Cost = (28 minutes x $2) + $3.60 = $56 + $3.60 = $59.60
Productivity (Revenue per $ input) = $400 / $59.60 = 6.71
Current = 5.00
Company A = 6.30
Company B = 6.71
The company B would have the highest productivity in terms of revenue per dollar of input, that is 6.71.
Hope this helps!
If a property title search firm is contemplating using online software to increase its search productivity. The option that would have the highest productivity in terms of revenue per dollar of input is Company B.
Calculation for the productivity in terms of revenue per dollar input
Current
Total cost =40 minutes × $2 per minutes
Total cost= $80
Productivity =$400/$80
Productivity = $5
Company A
Total cost =(40 minutes-10 minutes) × $2 + $3.50
Total cost= $63.5
Productivity =$400/$63.5
Productivity= $6.299
Productivity=$6.30 (Approximately)
Company B
Total cost =(40 minutes-12 minutes) × $2 + $3.60
Total cost=$59.6
Productivity = $400/$59.6
Productivity = $6.71
Summary
Approach Productivity (Revenue per Dollar Input)
Current $5 +- 0.01
Company A $6.30+- 0.01
Company B $6.71+-0.01
Based on the above calculation the option that would have the highest productivity in terms of revenue per dollar of input is Company B with the productivity of $6.71
Inconclusion if a property title search firm is contemplating using online software to increase its search productivity. The option that would have the highest productivity in terms of revenue per dollar of input is Company B.
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