Calculate the productivity in terms of revenue per dollar


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Q: 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

b. Which option would have the highest productivity in terms of revenue per dollar of input?

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Operation Management: Calculate the productivity in terms of revenue per dollar
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