A property title search firm is contemplating using online software to increase
ID: 412511 • Letter: A
Question
A property title search firm is contemplating using online software to increase its search productivity. Currently an average of 65 minutes is needed to do a title search. The researcher cost is $1.80 per minute. Clients are charged a fee of $117. Company A's software would reduce the average search time by 20 minutes, at a cost of $45.00 per search. Company B's software would reduce the average search time by (expression error) minutes at a cost of $(expression error) per search a. Calculate the productivity in terms of revenue per dollar of input. (Round your intermediate calculations and final answers to 2 decimal places. Omit the "$" sign in your response.) Productivity (Revenue per Dollar Input) Approach Current Company A Company B b. Which option would have the highest productivity in terms of revenue per dollar of input? O Current OCompany A Company BExplanation / Answer
Normal Time required for title search is 65 min and cost per min is 1.8 $.
Hence total cost is 1.8*65=117 $
Currently, revenue per $ input is 0 as revenue is 117 $ and input cost is also 117 $.
Company A will search in 65-20 = 45 min and the cost will be 45 $ however client will pay 117 $.
Company A's, Revenue per $ input will be 117/45 = 2.6.
for Company'B revenue per $ input, we need to have more details. As per details available in the question, I will select company A in terms of better productivity over current situation.