A Manager in Charge of New Product Development Can Hire

question 101

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:

$\begin{array}{cccc}\text { Engineers }(E) &&\text { Market Researchers }(R) \\& \text { Additional } & & \text { Additional } \\\text { Worker } & \text { NewProducts } & \text { Worker } & \text { NewProducts } \\\hline1^{\text {st }} & 240 & 1^{\text {st }} & 80 \\2^{\text {nd }} & 200 & 2^{\text {nd }} & 70 \\3^{\text {rd }} & 160 & 3^{\text {rd }} & 60 \\4^{\text {th }} & 100 & 4^{\text {th }} & 50 \\5^{\text {th }} & 40 & 5^{\text {th }} & 40\end{array}$
-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

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Definitions:

Hydrogenation

A chemical reaction where hydrogen is added to double or triple bonds in an organic compound, often resulting in saturated compounds.

2-Pentene

An alkene with the formula C5H10, featuring a double bond between the second and third carbon atoms.

Pentane

A straight-chain alkane with the formula C5H12, used as a solvent in the laboratory and as a standard in certain types of chromatography.

Mass Spectrum

A graph or chart that displays the distribution of ions by mass in a sample, providing information about the molecular weight and structure of compounds.