Jackson is a manager at the local 'Two-minute Bank'.He wants to extend the bank's operating hours by 3 more hours,but he'll have to hire one more bank teller.Jackson estimates the benefits from keeping the bank opened longer hours to be $1,900 per week,and he'll have to pay the new bank teller $700 per week.Should Jackson hire the additional bank teller? Why?
A) Jackson should not hire the additional bank teller because the expected profit is only $1,200 per week.
B) Jackson should not hire the additional bank teller because the expected additional benefits are greater than the expected additional costs.
C) Jackson should hire the additional bank teller because the expected additional benefits are lower than the expected additional costs.
D) Jackson should hire the additional bank teller because the expected additional benefits are greater than the expected additional costs.
E) Jackson should not hire the additional bank teller because the expected additional benefits are lower than the expected additional costs.

Question

Quizplus · Accepted Answer

Jackson should calculate the net benefits of hiring the additional bank teller. The net benefit is the difference between the additional benefits ($1,900) and the additional costs ($700), which equals $1,200 per week. Since the net benefits are positive, it is profitable for the bank to hire the additional bank teller. Therefore, Jackson should hire the additional bank teller. The correct choice is D.

Jackson Is a Manager at the Local 'Two-Minute Bank