A copier company want to expand production It currently has

A copier company want to expand production. It currently has 20 workers who share eight copiers. 2 months ago the firm added 2 copiers, and output increased by 100,000 pages per day. One month ago, they added 5 workers and productivity also increased by 50,000 pager per day. Copiers cost about twice as much as workers. would you recommend they hire another empolyee or buy another copier? why?

Solution

Cost of copiers is twice as much as workers. 2 copiers, in terms of cost, would be cheaper than hiring 5 workers. Adding 2 extra copiers increased output by 100,000 pages per day. Whereas hiring 5 additional workers increased output only by 50,000 copies.

Therefore, I would recommend to buy another copier instead of hiring another employee.

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