Erastus has contract to pack big vitamin tablets

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Erastus has a contract to pack big vitamin tablets in little plastic tubes. He currently has an agreement with a local high school student, Sally, to do work around his small factory. He pays Sally $24 a day just to come in and then pays her per item done. The vitamin job would take ¼ of the time Sally is available on a given day. He would then need to pay Sally $0.20 per each tube packed.

Sally’s little sister, Joan, can’t do as many things around the factory as Sally can, but she could pack vitamin tubes. She is willing to pack tubes for $0.12 per tube, and would ask $10 per day just to come in.

Reference no: EM132217769

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