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You have been hired as a business consultant by a local Burger Queen franchise. Business is...

You have been hired as a business consultant by a local Burger Queen franchise. Business is booming at this store and the owner is trying to decide whether to invest in adding a new grill and French fry machine or simply hire more workers. Please provide a well-reasoned original posting

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Answer #1

The owner must investing in more machinery as this option will provide more benefit than its additional cost. An additional manpower will results in high cost and lower benefits if the business model is self servicing. Moreover higher number of workers will also lead to higher machinery which will add to cost even more.

Hence the opportunity cost of investing in machinery is less than hiring workers and thus is most preferable option.

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