A Company Is Deciding Where to Assign Its Summer Intern

question 36

Essay

A company is deciding where to assign its summer intern. The manager estimates that the intern can save $10,000 in the supply chain or increase sales (revenue) by $25,000. If sales (revenue) is divided into the three categories shown in the table where should the manager assign the intern to maximize profits?
$$\begin{array} { | l | l | l | l | } \hline & \begin{array} { l } \text { Supply Chain } \\\text { costs }\end{array} & \begin{array} { l } \text { Variable Costs } \\\text { (materials) }\end{array} & \text { Profits } \\\hline \% \text { of current sales } & & & \\\text { (revenue) } & 35 & 25 & 40 \\\hline\end{array}$$

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Definitions:

Workforce

The collective group of individuals engaged in work or employment, contributing to the productivity of an economy or a specific organization.

360º Feedback Method

A performance appraisal system where an employee's performance is evaluated by feedback collected from peers, subordinates, superiors, and sometimes clients.

Appraisal Method

A systematic evaluation process used to assess an employee's job performance and productivity.

Evaluation Process

A systematic method of assessing the performance, value, or condition of something or someone.