A Government Agency Is Having Problems with Personal Telephone Calls

question 8

Multiple Choice

A government agency is having problems with personal telephone calls made during working hours. Because each minute of a personal call costs the agency $0.50 in wasted wages, it has decided to hire operators to monitor calls. The agency wants to hire the number of operators that will minimize the total cost of personal calls.

$\begin{array}{cc}\begin{array}{c}\text { Number of } \\\text { operators }\end{array} & \begin{array}{c}\text { Minutes of personal } \\\text { calls(per week) }\end{array} \\\hline 0 & 3900 \\1 & 2300 \\2 & 1300 \\3 & 600 \\4 & 100 \\5 & 0\end{array}$
-If operators receive $400 a week, what is the lowest possible total cost of personal calls?

• A) $ 650
• B) $ 800
• C) $1450
• D) $1500
• E) none of the above

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Definitions:

Expansion Project

An initiative undertaken by a company to increase its production or service capacity, often requiring significant capital investment.

Operating Cash Flow

Cash generated from a company's normal business operations, indicating its ability to generate sufficient positive cash flow to maintain and grow operations.

Net Working Capital

The difference between a company's current assets and its current liabilities, indicating its short-term financial health and efficiency.