Question

Program A Program B Program C Program D
Program Cost 14000 13000 14500 16000
Admin Fee 145 170 140 130
HR Staff Needed 3 4 4 3
Hours to Complete Training 25 28 25 30

A human resource manager is considering replacing a traditional program with a new virtual training program for 10 new employees. The salary of the HR staff is 20$ per hour, and the salary of new employees is $12.50 per hour.

Assuming quality of programs is equal, which is the most cost efficient?

A) Program A
B) Program B
C) Program C
D) Program D
E) All would be the same

Answer 1

Question #42059

Condition.

Solution.

Cost of program=cost+admin fee+20*(HR staff needed)*(hours to complete training)+n*12.5*(hours to complete training)

n- new employees

we can get system of equations:

$$\left\{ \begin{array}{l} 15645 + 312.5n_A = C \\ 15410 + 350n_B = C \\ 14840 + 312.5n_C = C \\ 17930 + 375n_D = C \end{array} \right.$$

Where

$n_A, n_B, n_C, n_D$ - new employees for each program

C - cost of each program

$$\begin{array}{l} n _ {A} = 6 \\ n _ {B} = - 1 5 \\ n _ {C} = - 4 9 \\ n _ {D} = C / 3 7 5 - 4 7 \\ \end{array}$$

when $C = 17928.75$ $\square > n_D = 0$

Answer.

As start cost of program A is less than cost of program D for case if no new employees as program A is more cost efficiently than program D.

And also, it is more cost efficiently than programs B,C (they have negative values of number of new employees).

So, program A is the most cost efficiently (answer A)).

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