The law firm of Dewey, Cheatham, and Howe specializes in accident injury claims. The firm charges its clients 25% of any damage award given. The only cost to the firm of producing an accident injury claim is the time spent by a junior partner working on the case. Junior partners are paid $100 per hour for this drudgery. If the firm is suing for damages of $640,000 and if its chances of winning a case are , where h is the number of hours spent working on the case, then to maximize its profits, how many hours should it have the junior partner spend working on the case?
A) 24
B) 40
C) 8
D) 12
E) None of the above.

Question

The law firm of Dewey, Cheatham, and Howe specializes in accident injury claims. The firm charges its clients 25% of any damage award given. The only cost to the firm of producing an accident injury claim is the time spent by a junior partner working on the case. Junior partners are paid $100 per hour for this drudgery. If the firm is suing for damages of $640,000 and if its chances of winning a case are  , where h is the number of hours spent working on the case, then to maximize its profits, how many hours should it have the junior partner spend working on the case?
A) 24 
B) 40 
C) 8 
D) 12 
E) None of the above.

Quizplus · Accepted Answer

The Answer of The law firm of Dewey, Cheatham, and Howe specializes in accident injury claims. The firm charges its clients 25% of any damage award given. The only cost to the firm of producing an accident injury claim is the time spent by a junior partner working on the case. Junior partners are paid $100 per hour for this drudgery. If the firm is suing for damages of $640,000 and if its chances of winning a case are  , where h is the number of hours spent working on the case, then to maximize its profits, how many hours should it have the junior partner spend working on the case?
A) 24 
B) 40 
C) 8 
D) 12 
E) None of the above.

The Law Firm of Dewey, Cheatham, and Howe Specializes in Accident