A Manager in Charge of New Product Development Can Hire

question 14

Multiple Choice

A manager in charge of new product development can hire engineers and market researchers.The annual salary of an engineer is $40,000 while a market researcher receives $20,000.The marginal contribution of engineers and market researchers are: Based on the above information,how should a manager with an annual budget of $140,000,allocate this budget in order to maximize the number of new products developed?

• A)Hire one engineer and five market researchers
• B)Hire two engineers and three market researchers
• C)Hire three engineers and one market researcher
• D)Hire four engineers and four market researchers

---

Definitions:

Payable on Demand

Refers to a financial obligation that must be paid by the debtor when the creditor requests it.

Drawer

In the context of banking, the person who writes or issues a check or draft instructing the drawee to pay someone else.

Drawee

The party upon whom a cheque or draft is drawn, and who is expected to pay the amount specified to the payee.

Payee

The individual or entity to whom a cheque or electronic payment is made payable.