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Finding optimal combination of Engineers and Researchers

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A manager in charge of the development of new products could hire engineers and market researchers. The annual salary for an engineer is $ 40,000 while a market researcher receives $ 20.000. The marginal contribution of both is given in the table below. Determine what combination of engineers and market Researchers the company would use to maximize the new products with a budget of $ 140,000.

Engineer (E) Marker Researcher (R)
Additional Additional
Worker New Products Worker New Products

1st 240 1st 80
2nd 200 2nd 70
3rd 160 3rd 60
4th 100 4th 50
5th 40 5th 40.

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Solution provides step-by-step methodology to find the optimal combination of engineers and market researchers.

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Please refer attached file for better clarity of tables.

Engineer (E) Market Researcher R
Worker New Products Worker New Products
N MPE WE MPE/WE N MPR WR MPR/WR
1 240 40000 0.0060 1 80 20000 0.0040
2 200 40000 0.0050 2 70 20000 0.0035
3 160 40000 0.0040 3 60 20000 0.0030
4 100 40000 0.0025 4 50 20000 0.0025
5 40 ...

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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