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Nation -Wide Bus Lines (NWBS) conducts training classes for new drivers. The classroom can hold 35 students. As long as the class size is less than or equal to 35, the training program costs $22,000 per class. Ignore the time consumed in training.
After completing the training program, drivers are paid $1,600 per month stipend until a full-time driver position is open. After trained driver begins the job, the driver is paid aregular salary of $4,000 per month. The NWBS needs 5 new drivers per month.
Goal isto minimize the total cost(training cost + stipend).
a. How large should the training classes be?
b. How many training classes should the company hold each year?
c. What is average waiting time for a trained driver?
need to make a memo to company executives explaining why adequate training is important to the company and how the financial costs can be justified
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