Allocating the budget-maximize the number of customers

Reference no: EM1312238

You are the manager of the customer service department at a bank and you want to hire customer service representatives for a newly opened bank branch. You realize that you can hire employees with a high school degree (HS) who earn $10,000 annually or employees with a bachelor's degree (B) who earn $20,000. You want to maximize the number of customers served given a fixed payroll. The table below presents historical data on the number of customers served for the given number of workers in each category.

	Number of Customers Served
No. of Workers	High School Degree	Bachelor's Degree
1	80	90
2	140	170
3	190	230
4	230	270
5	265	305
6	295	330

You are provided with a payroll budget of $80,000, and your objective is to maximize the number of customers served. How would you allocate the budget in order to achieve your objective?
Your assistant suggested that you hire three HS and three B; would you accept the suggestion and act accordingly? Why? Or Why not?

If your payroll (budget) is increased to $120,000, what should you do to maximize the number of customers served?

Reference no: EM1312238

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