Imagine you have some workers and some handheld computers that you can use to take inventory at a warehouse. There are diminishing returns to taking inventory. If one worker uses one computer, he can inventory 125 items per hour. Two workers sharing a computer can together inventory 175 items per hour. Three workers sharing a computer can together inventory 225 items per hour. And four or more workers sharing a computer can together inventory fewer than 235 items per hour. Computers cost $125 each and you must pay each worker $30 per hour.
Required:
a. If you assign one worker per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places.
b. If you assign two workers per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places.
c. If you assign three workers per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places.
d. If you assign four workers per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places.
e. How many workers per computer should you assign if you wish to minimize the cost of inventory per single item?