Question
Janice Weller, the manager of the customer service at the First Bank of Jefferson County, can hire employees with a high school diploma for $20,000
Janice Weller, the manager of the customer service at the First Bank of Jefferson County, can hire employees with a high school diploma for $20,000 annually and employees with a bachelor's degree for $30,000. She wants to maximize the number of customers served, given a fixed payroll. The following table shows how the total number of customers served varies with the number of employees.
Total number of customers served
Employees HS diploma (TBHS) BA degree(TBBA) MBHS MBBA. MBHS/ Wage. MBBA/Wage
1 120 100 120. 100 .006000 .003333
2 220 190 100 90 .005000 .003000
3 300 270 80 80 .004000 .002677
4 370 330 70 60 .003500 .002000
5 430 380 60 50 .003000 .001666
6 470 410 40 30 .002000 .001000
Where: TBHS= total number of customers served by employees with HS diploma
TBBA= total number of customers served by employees with BA degree
MBHS= Additional or marginal number of customers served by employees with HS diploma
MBBA= Additional or marginal number of customers served by employees with BA degree
a.If Ms. Waller has a payroll of $160,000, how should she allocate this budget in order to maximize the number of customers served?
b.What is the total number of customers served in Employee 1?
c.If her budget is increased to $240,000, how should she allocate this higher budget to maximize the number of customers served?
d. What is the total number of customers served in Employee 3?
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