An Agency Is Having Problems with Personal Phone Calls Made

question 2

Multiple Choice

An agency is having problems with personal phone calls made during working hours.Each minute of a personal call costs the agency $0.50 in wasted wages.The agency hires operators to monitor calls in order to attain the optimal number of personal calls (minimize total cost of personal calls) . $$\begin{array} { c c } & \text { Total minutes af }\\\text { Numbe of } & \text { personal calls (per } \\\text { Operators } & \text { hour) } \\\hline 0 & 600 \\1 & 480 \\2 & 410 \\3 & 370 \\4 & 350 \\\hline\end{array}$$ Based on the above information,what is the most the agency would be willing to pay the first operator?

• A)$480
• B)$300
• C)$240
• D)$120
• E)none of the above

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Definitions:

Equipment

Tangible property that is used in the operations of a business, not intended for sale.

Cash

Currency and other liquid instruments that a company possesses, readily available for transactions.

Capital

Resources, including financial assets or funds, utilized by a company to fund its operations and growth.

Fair Market Value

The price at which an asset would be bought or sold in a fair transaction between willing and informed parties.