Calculate the productivity in terms of revenue per dollar


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 $440. Company A’s software would reduce the average search time by 16 minutes, at a cost of $3.70 per search. Company B’s software would reduce the average search time by 17 minutes at a cost of $5.80 per search.

a. Calculate the productivity in terms of revenue per dollar of input

Current:$

Company A: $

Company B: $

b. Which option would have the highest productivity in terms of revenue per dollar of input? Current, Company A, or Company B

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