Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3. You are HR director for a growing architecture firm in New Haven, Connecticut, which currently has need of drafting 36 blueprints every hour. Each

image text in transcribed
3. You are HR director for a growing architecture firm in New Haven, Connecticut, which currently has need of drafting 36 blueprints every hour. Each of your company's architects can create on average three blueprints per hour. You are considering hiring six drafters to shoulder the load; each drafter is slower than the architects and can create on average only two blueprints per hour. You scan the current wages in the New Haven area (https://www.bls.gov/oes/current/oessroma.htm) and notice that the architects in your company earn the local occupational median wage of $39.85 per hour, but that the prospective six drafters will likely want to get paid their local occupational median wage of $28.78 per hour. a. Would your company save money in the creation of the 36 blueprints by hiring the six new drafters and firing some architects? b. The Bureau of Labor Statistics projects that employment of drafters over the next decade will drop by 2.5%, compared to an increase of 0.8% for architects (https://www.bls.gov/emp/tables/emp-by-detailed-occupation.htm); your company assumes that this will reduce drafter wages down to $25.75 due to the drop in demand for them. If the other values remain the same (architect wage and speed, need for 36 blueprints per hour), would the company save money in the creation of the 36 blueprints by hiring six drafters and firing some architects

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Economics Of The Sulphur Industry

Authors: Jared E Hazleton

1st Edition

1317353927, 9781317353928

More Books

Students also viewed these Economics questions

Question

=+What are the factors and levels?

Answered: 1 week ago