Pietro Is a Manager at a Carwash

question 155

Essay

Pietro is a manager at a carwash.He has hired 10 workers to wash and detail cars for him and is considering what type of payment scheme he should set up for his workers.He can pay each of his workers $9 per hour to wash and detail cars,or he can pay his workers $12 for each car a worker washes and details.(It takes 75 minutes,on average,for an employee to wash and detail a car.)If Pietro wants to maximize the number of cars his workers wash and detail in one day,which payment scheme should he use? Explain.

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Definitions:

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