Solve the Problem The Store Manager Also Knows That to Make the Store

question 121

Multiple Choice

Solve the problem.
-A large department store needs at least 3,200 labor hours covered per week. It employs full-time staff 40 hr/wk and part-time staff 30 hr/wk. The cost to employ a full-time staff member is more
Because the company pays benefits such as health care and life insurance. $$\begin{array} { l | c | c } & \text { Hours per Week } & \text { Cost per Hour } \\\hline \text { Full-time } & 40 & 20 \\\text { Part-time } & 30 & 13\end{array}$$ The store manager also knows that to make the store run efficiently, the number of full-time employees must
Be at least 1.25 times the number of part-time employees. Determine the number of full-time
Employees and the number of part-time employees that should be used to minimize the weekly labor
Cost. What is the minimum weekly cost to staff the store under these conditions.

• A) 40 full-time employees and 50 part-time employees for a minimum cost of $1,450.
• B) 50 full-time employees and 40 part-time employees for a minimum cost of $1,520.
• C) 40 full-time employees and 50 part-time employees for a minimum cost of $51,500.
• D) 50 full-time employees and 40 part-time employees for a minimum cost of $55,600.

---

Definitions:

Supply-side Theory

An economic theory that argues lower taxes and decreased regulation stimulate economic growth by increasing production.

Failure

The condition or fact of not achieving a desired outcome or falling short in a particular endeavor or objective.

Altruism

The selfless concern for the well-being of others, often leading to voluntary actions intended to benefit others with no expectation of reward.

Entrepreneurship

The process of designing, launching, and running a new business or enterprise, often synonymous with taking financial risk for profit.