What is the productivity for each option

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Juan's Pro-Tax Service is deciding whether to buy software to expedite some of its tax return preparation during the busy season. Juan charges a customer $430 for this type of return. He pays his employee $2.00 per minute, and it takes about 35 minutes to complete the return. Two companies provide an online service, and charge a fixed fee per return. If Juan buys software from  Company A, they would charge him $3.60 per return, and the preparation would take 12 minutes less. If he buys from Company B, they would charge him $6.00 per return, and the preparation would take 13 minutes less.

a. What is the productivity for each option? (Use two decimal places for both intermediate calculations and final answers. Do not use the dollar sign when you type in your answer.)

Current

Company A

Company B

b. Which option should Juan choose?

Reference no: EM131669412

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