At Westonci.ca, we connect you with the answers you need, thanks to our active and informed community. Discover a wealth of knowledge from experts across different disciplines on our comprehensive Q&A platform. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.
Sagot :
Let's analyze the given data and determine which allocation of tasks is most efficient based on the opportunity costs.
1. Opportunity Cost for Sam:
- Sam can process 7 tax returns per day.
- Alternatively, Sam can make \( \frac{30}{28} \) sales calls per day.
Opportunity Cost of 1 Tax Return for Sam:
Since Sam has the option to process 7 tax returns or make \( \frac{30}{28} \) sales calls per day, let's calculate the opportunity cost of processing one tax return in terms of sales calls:
[tex]\[ \text{Opportunity Cost per Tax Return for Sam} = \frac{\text{Sales Calls Sam can make}}{\text{Tax Returns Sam can process}} = \frac{\frac{30}{28}}{7} = 1.0714 \text{ sales calls} \][/tex]
Opportunity Cost of 1 Sales Call for Sam:
Similarly, the opportunity cost of making one sales call in terms of tax returns:
[tex]\[ \text{Opportunity Cost per Sales Call for Sam} = \frac{\text{Tax Returns Sam can process}}{\text{Sales Calls Sam can make}} = \frac{7}{\frac{30}{28}} = 6.5333 \text{ tax returns} \][/tex]
2. Opportunity Cost for KC:
- KC can make 4 sales calls per day.
- Alternatively, KC can process 1 tax return per day.
Opportunity Cost of 1 Sales Call for KC:
The opportunity cost of making one sales call in terms of tax returns for KC:
[tex]\[ \text{Opportunity Cost per Sales Call for KC} = \frac{\text{Tax Returns KC can process}}{\text{Sales Calls KC can make}} = \frac{1}{4} = 0.25 \text{ tax returns} \][/tex]
Opportunity Cost of 1 Tax Return for KC:
The opportunity cost of processing one tax return in terms of sales calls for KC:
[tex]\[ \text{Opportunity Cost per Tax Return for KC} = \frac{\text{Sales Calls KC can make}}{\text{Tax Returns KC can process}} = 4 \text{ sales calls} \][/tex]
3. Conclusions based on Opportunity Costs:
When comparing the opportunity costs, we observe the following:
- Sam’s opportunity cost of making a sales call (6.5333 tax returns) is very high compared to KC’s opportunity cost of making a sales call (0.25 tax returns). Therefore, it is inefficient for Sam to make sales calls.
- KC’s opportunity cost of processing a tax return (4 sales calls) is much higher compared to Sam’s opportunity cost of processing a tax return (1.0714 sales calls). Therefore, it is inefficient for KC to process tax returns.
Thus, the best allocation of tasks should be:
- Sam should focus on processing tax returns as this is what Sam is more productive at relative to sales calls.
- KC’s time would be best spent making sales calls as KC is more productive at this task relative to processing tax returns.
Valid economic conclusion:
- Sam's time would be best spent on tax returns.
- KC's time would be best spent on sales calls.
By following this optimal allocation, they can maximize their overall productivity and efficiency.
1. Opportunity Cost for Sam:
- Sam can process 7 tax returns per day.
- Alternatively, Sam can make \( \frac{30}{28} \) sales calls per day.
Opportunity Cost of 1 Tax Return for Sam:
Since Sam has the option to process 7 tax returns or make \( \frac{30}{28} \) sales calls per day, let's calculate the opportunity cost of processing one tax return in terms of sales calls:
[tex]\[ \text{Opportunity Cost per Tax Return for Sam} = \frac{\text{Sales Calls Sam can make}}{\text{Tax Returns Sam can process}} = \frac{\frac{30}{28}}{7} = 1.0714 \text{ sales calls} \][/tex]
Opportunity Cost of 1 Sales Call for Sam:
Similarly, the opportunity cost of making one sales call in terms of tax returns:
[tex]\[ \text{Opportunity Cost per Sales Call for Sam} = \frac{\text{Tax Returns Sam can process}}{\text{Sales Calls Sam can make}} = \frac{7}{\frac{30}{28}} = 6.5333 \text{ tax returns} \][/tex]
2. Opportunity Cost for KC:
- KC can make 4 sales calls per day.
- Alternatively, KC can process 1 tax return per day.
Opportunity Cost of 1 Sales Call for KC:
The opportunity cost of making one sales call in terms of tax returns for KC:
[tex]\[ \text{Opportunity Cost per Sales Call for KC} = \frac{\text{Tax Returns KC can process}}{\text{Sales Calls KC can make}} = \frac{1}{4} = 0.25 \text{ tax returns} \][/tex]
Opportunity Cost of 1 Tax Return for KC:
The opportunity cost of processing one tax return in terms of sales calls for KC:
[tex]\[ \text{Opportunity Cost per Tax Return for KC} = \frac{\text{Sales Calls KC can make}}{\text{Tax Returns KC can process}} = 4 \text{ sales calls} \][/tex]
3. Conclusions based on Opportunity Costs:
When comparing the opportunity costs, we observe the following:
- Sam’s opportunity cost of making a sales call (6.5333 tax returns) is very high compared to KC’s opportunity cost of making a sales call (0.25 tax returns). Therefore, it is inefficient for Sam to make sales calls.
- KC’s opportunity cost of processing a tax return (4 sales calls) is much higher compared to Sam’s opportunity cost of processing a tax return (1.0714 sales calls). Therefore, it is inefficient for KC to process tax returns.
Thus, the best allocation of tasks should be:
- Sam should focus on processing tax returns as this is what Sam is more productive at relative to sales calls.
- KC’s time would be best spent making sales calls as KC is more productive at this task relative to processing tax returns.
Valid economic conclusion:
- Sam's time would be best spent on tax returns.
- KC's time would be best spent on sales calls.
By following this optimal allocation, they can maximize their overall productivity and efficiency.
Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. We hope this was helpful. Please come back whenever you need more information or answers to your queries. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.
