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A property title search firm is contemplating using online software to increase its search productivity. Currently an average of 56 minutes is needed to do a title search. The researcher cost is $1.60 per minute. Clients are charged a fee of $430. Company A’s software would reduce the average search time by 19 minutes, at a cost of $3.90 per search. Company B’s software would reduce the average search time by 24 minutes at a cost of $5.90 per search.
a. Calculate the productivity in terms of revenue per dollar of input. (Round your intermediate calculations and final answers to 2 decimal places. Omit the "$" sign in your response.)
Approach Productivity
(Revenue per Dollar Input)
Current $
Company A $
Company B $
b. Which option would have the highest productivity in terms of revenue per dollar of input?
Current
Company B
Company A
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