John works 40 hours in a week, at $15.00 per hour, and produces 150 widgets. Amy works 32 hours in a week, at $18.50 per hour, and produces 128 widgets. Dave works 36 hours in a week, at $17.75 per hour, and produces 141 widgets. Which employee is the most cost effective for the company in terms of widgets produced per dollar of payroll spent?
A)John
B)Amy
C)Dave
D)Dave and Amy are equally effective

Question

Quizplus · Accepted Answer

John's cost effectiveness is calculated by dividing the total number of widgets he produces by his total weekly pay. John's weekly pay is 40 hours * $15.00/hour = $600. His cost effectiveness is 150 widgets / $600 = 0.25 widgets per dollar. Amy's weekly pay is 32 hours * $18.50/hour = $592. Her cost effectiveness is 128 widgets / $592 = approximately 0.2162 widgets per dollar. Dave's weekly pay is 36 hours * $17.75/hour = $639. His cost effectiveness is 141 widgets / $639 = approximately 0.2207 widgets per dollar. Comparing these, John has the highest widgets per dollar, making him the most cost effective.

John Works 40 Hours in a Week, at $15