A Manager in Charge of New Product Development Can Hire

question 55

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 Given the above information,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.

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Definitions:

Stockholders' Equity

The portion of a company's capital that belongs to shareholders, calculated as total assets minus total liabilities.

Common Stock Option Warrants

Rights issued to investors to purchase stock at a specified price before a certain date, often used as an investment incentive.

Stock Option Plan

A compensation strategy used by companies to grant employees the option to purchase company shares at a predetermined price.