Problem
A property title search firm is contemplating using online software to increase its search productivity.
Currently an average of 65 minutes is needed to do a title search. The researcher cost is $1.70 per minute. Clients are charged a fee of $490.
Company A's software would reduce the average search time by 12 minutes, at a cost of $3.50 per search.
Company B's software would reduce the average search time by 16 minutes at a cost of $5.30 per search.
a. Calculate the productivity in terms of revenue per dollar of input.
(Round your intermediate calculations and final answers to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)
| Approach |
Productivity
(Revenue per Dollar Input)
|
| Current |
$ |
| Company A |
$ |
| Company B |
$ |
b. Which option would have the highest productivity in terms of revenue per dollar of input?
Company A
Company B
Current