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Extent - (How much) Decisions

A copy company wants to expand production. It currently has 20 workers who share eight copiers. Two months ago, the firm added two copiers, and output increased by 100,000 pages per day. One months ago, they added five workers, and productivity also increased by 50,000 pages. Copiers cost about twice as much as workers.

Would you recommend they hire another employee or buy another copier?

Solution Preview

# of copier added = 2

Productivity Improvement from Copier = 100,000 pages per day

Productivity improvement per copier per day = 100,000 / 2 = 50,000 pages per day

Let the cost of copier = x

therefore number of pages ...

Solution Summary

This solution provides calculations for determining whether the copy company should hire another employee or buy another copier.