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A property title search firm is contemplating using online software to increase its search productivity. Currently an average of 40 minutes is needed to do a title search. The researcher cost is $2 per minute. Clients are charged a fee of $400.
Company A's software would reduce the average search time by 10 minutes, at a cost of $3.50 per search. Company B's software would reduce the average search time by 12 minutes at a cost of $3.60 per search.
Which option would have the highest productivity in terms of revenue per dollar of input?
You must show how you obtain the answers to the problem. If you just give a solution without showing how it was obtained, you will receive no credit.
There are 3 productivities asked for: (1) Current method, (2) using Company A's software, and (3) using Company B's software.
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