A radio manufacturer is experiencing theft problems at its warehouse and has decided to hire security guards to reduce the thefts. The firm wants to minimize the net cost of warehouse thefts.

$\begin{array}{ll}
\text { Number of}& \text {Number of Radios }\ \text { Security Guards}& \text { Stolen Per Week}\
0 & 50 \
1 & 30 \
2 & 20 \
3 &14 \
4 & 8 \
5 & 6 \
\end{array}$
-If the cost of a stolen radio is $25, what is the MOST the firm would be willing to pay to hire the first security guard?

Question

A radio manufacturer is experiencing theft problems at its warehouse and has decided to hire security guards to reduce the thefts. The firm wants to minimize the net cost of warehouse thefts.

$\begin{array}{ll}
 \text { Number of}& \text {Number of Radios }\ \text { Security Guards}& \text { Stolen Per Week}\
0 & 50 \
1 & 30 \
2 & 20 \
3 &14 \
4 & 8 \
5 & 6 \
\end{array}$
-If the cost of a stolen radio is $25, what is the MOST the firm would be willing to pay to hire the first security guard?

Quizplus · Accepted Answer

The first security guard reduces theft from 50 to 30 radios per week, saving 20 radios. At $25 per radio, the savings is $500.

A Radio Manufacturer Is Experiencing Theft Problems at Its Warehouse