a.
Here total cost is the input.
Productivity = Fees charged / Total cost
Current approach :
Total cost = [ 55 minutes * $2 per minute ] = $110
Productivity = $400 / $110 = $3.64
Company A :
Total cost = [ ( 55 minutes - 12 minutes ) * $2 per minute ] + $3.40 = $89.40
Productivity = $400 / $89.40 = $4.47
Company B :
Total cost = [ ( 55 minutes - 17 minutes ) * $2 per minute ] + $5.30 = $81.30
Productivity = $400 / $81.30 = $4.92
Approach |
Productivity ( Revenue per Dollar input ) |
Current | $3.64 |
Company A | $4.47 |
Company B | $4.92 |
b. Company B is the correct answer.
Problem 2-8 A property title search firm is contemplating using online software to increase its search...
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