An Agency Is Having Problems with Personal Phone Calls Made

question 82

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 decides to hire operators to monitor calls in order to attain the optimal number of personal calls (minimize total cost of personal calls) .

$$\begin{array} { c c } \text { Number of } & \text { Total minutes af } \\\text { Operatars } & \text { personal calls (per hour } \\\hline 0 & 60 0\\1 & 480 \\2 & 410 \\3 & 370 \\4 & 350\end{array}$$
-If operators receive $25 an hour, what is the minimum possible total cost of personal calls (per hour) ?

• A) $460
• B) $255
• C) $120
• D) $ 85
• E) none of the above

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Definitions:

GAAP

Generally Accepted Accounting Principles, which are standards and conventions for financial reporting in the United States.

Compensation Costs

The expenses incurred by a company to pay employees, including salaries, benefits, bonuses, and social security contributions.

Grant Date

The date on which an employee receives a stock option or grant as part of their compensation package.

Stock-Based Compensation

A method of paying employees or service providers using shares of the company's stock, reflecting a form of non-cash compensation.