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A Radio Manufacturer Is Experiencing Theft Problems at Its Warehouse

question 21

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A radio manufacturer is experiencing theft problems at its warehouse and has decided to hire security guards to reduce the thefts.The firm wants to maximize the net benefit of warehouse security guards. Number of Security Guards012345Number of Radios Stolen Per Week 5030201486\begin{array}{c}\begin{array}{c}\text {Number of}\\\text { Security Guards}\\0\\1\\2\\3\\4\\5\\\end{array}\begin{array}{c}\text {Number of Radios}\\\text { Stolen Per Week }\\50\\30\\20\\14\\8\\6\\\end{array}\end{array}
Given the above info,if each security guard is paid $200 a week and the cost of a stolen radio is $50,how many security guards should the firm hire?

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Definitions:

Medicare Tax

A federal tax that funds the Medicare program, deducted from the earnings of employees and matched by employers.

Unemployment Taxes

Taxes paid by employers to fund unemployment insurance programs, aiding workers who have lost their jobs.

Salaries Payable

An account containing the total amount of salary expense that has been incurred by a company but has not yet been paid out to employees.

Employer Payroll Tax Expense

Taxes paid by employers based on the salary and wages of employees, including social security and Medicare taxes in the United States, among others.

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