A package delivery service currently has 12 vans and 16 employees.Vans cost $400 per week and employees earn $300 per week.The last van added 480 packages delivered to total output,while the last employee added 450 packages.The firm
A)is making the correct decision because the dollar expenditure ($4800)is equal for vans and employees.
B)should use more vans and fewer employees because the last van added 480 packages while the last employee only added 450 packages.
C)should use fewer vans and more employees because the last dollar spent on vans yielded 1.2 additional packages delivered,while the last dollar spent on employees yielded 1.5 packages delivered.
D)could deliver more packages for the same budget by using fewer vans and more employees.
E)both c and d

Question

Quizplus · Accepted Answer

The last dollar spent on vans yields 480 packages / $400 = 1.2 packages per dollar, while the last dollar spent on employees yields 450 packages / $300 = 1.5 packages per dollar. Thus, the firm should use fewer vans and more employees to deliver more packages for the same budget, making both C and D correct.

A Package Delivery Service Currently Has 12 Vans and 16