A Local Business Owner Is Considering Adding Another Employee to His

question 83

Essay

A local business owner is considering adding another employee to his staff in an effort to increase the number of hours the store is open per day.
a. If the employee will cost the owner $4,000 per month and the store takes in $50/hour in revenue with variable costs of $15/hour, how many hours must the new employee work for the owner to break even?
b. The employee again costs $4000 and has agreed to work 120 hours. If variable costs remain at $15/hour and revenue is uncertain with a 40% chance of being $40/hour, 35% chance of being $20/hour, and 25% chance of being $35/hour should the owner hire the employee?

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Definitions:

Case Management Certification

A professional credential for case managers, emphasizing their expertise in coordinating patient care, resources, and support across the healthcare continuum.

Subpopulations

Distinct groups within a larger population that can be defined by specific characteristics, such as genetic traits, behaviors, or responses to treatment.

Community-Based

A term describing services or activities that are carried out within and for the benefit of the local community, often focusing on health, education, or welfare.

Primary Care Rotation

A period of medical training focused on the comprehensive, continuous care of patients of all ages in a variety of clinical settings.