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A Local Bank Manager Is Considering Adding Another Teller to His

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A local bank manager is considering adding another teller to his staff in an effort to increase the number of hours the bank is open per day.
A) If the employee will cost the owner $3,000 per month and the bank generates $150/hour in revenue with variable costs of $25/hour, how many hours must the new teller work for the owner to break even?
B) The employee wants a raise to $3,500 per month and has agreed to work 140 hours. If variable costs remain at $25/hour and the bank's revenue is now uncertain because of stricter financial laws with a 50 percent chance of being $120/hour, a 30 percent chance of being $100/hour, and a 20 percent chance of being $75/hour, should the owner provide the raise?


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