A Manager in Charge of New Product Development Can Hire

question 46

Multiple Choice

A manager in charge of new product development can hire engineers and market researchers. The annual salary of an engineer is $30,000 and that of a market researcher is $20,000. The marginal contribution of engineers and market researchers are

$\begin{array}{cccc}\text { Engineers }(E) &&\text { Market Researchers }(R) \\&\text { Additional }&&\text { Additional }\\\text { Worker } & \text { NewProducts } & \text { Worker } & \text { NewProducts }\\1^{\text {st }} & 50 & 1^{\text {st }} & 30 \\2^{\text {nd }} & 30 & 2^{\text {nd }} & 25 \\3^{\text {rd }} & 15 & 3^{\text {rd }} & 20 \\4^{\text {th }} & 10 & 4^{\text {th }} & 15 \\5^{\text {th }} & 8 & 5^{\text {th }} & 10\end{array}$
-If the manager has an annual budget of $120,000, how should this budget be allocated in order to maximize the number of new products developed?

• A) Hire two engineers and one market researcher.
• B) Hire two engineers and three market researchers.
• C) Hire three engineers and two market researchers.
• D) Hire three engineers and four market researchers.

---

Definitions:

Competitive Advantage

The unique attributes or capabilities that allow an organization to outperform its competitors.

HR Practices

These entail various strategies and procedures implemented by the Human Resources department, including hiring, training, and employee relations to improve workforce performance.

Shifting Jobs Offshore

The practice of relocating a business's operational processes or services to another country, often to reduce costs.

European Union (EU)

A political and economic union of 27 European countries that are located primarily in Europe.