A property title search firm is contemplating using online software to increase its search productivity. Currently an average of 45 minutes is needed to do a title search. The researcher cost is $1.8 per minute. Clients are charged a fee of $600. Company A’s software would reduce the average search time by 8 minutes, at a cost of $3.6 per search. Company B’s software would reduce the average search time by 9 minutes at a cost of $5.8 per search.
Calculate the productivity in terms of revenue per dollar of input. (Round your intermediate calculations and final answers to 2 decimal places. Omit the "$" sign in your response.)
|Approach|| Productivity per |
|b.||Which option would have the highest productivity in terms of revenue per dollar of input?|
|Approach||Average Time||Cost|| Productivity per |
|Current||45||45 × $1.8 = $81.00||$600/$81.00 = $7.41|
|Company A||37||37 × $1.8 + $3.6 = $70.20||$600/$70.20 = $8.55|
|Company B||36||36 × $1.8 + $5.8 = $70.60||$600/$70.60 = $8.50|