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Question 1198820: It cost Company Y 3,500 to 12,000 to hire each employee. The company needs to hire 8 new employees asap. Each employee makes 35 to 45 dollars an hour depending on experience. Employees with experience are offered a sign on bonus of 3,500 to 6500 depending on experience. Company Y is open from 9am-5pm and makes 50,000 a day. Company Y has a budget of 49,000 to hire new employees. Which employees should Company Y hire to maximize profit?
Note
Delivery Driver (produces 58,000) in profit each month (Cost 12,000 to hire)
Sr Operations Admin (produces 57,000)in profit each month (11,000 to hire)
Daily Operations (3,500 to 9,000 to hire) produces (25,000 to 33,00)in profit each month depending on experience.
Answer by textot(100)   (Show Source):
You can put this solution on YOUR website! **1. Determine Potential Employee Types**
* **Delivery Drivers:**
* Hiring Cost: $12,000
* Monthly Profit: $58,000
* High Profit Potential
* **Sr. Operations Admin:**
* Hiring Cost: $11,000
* Monthly Profit: $57,000
* High Profit Potential
* **Daily Operations:**
* Hiring Cost: $3,500 - $9,000 (Variable)
* Monthly Profit: $25,000 - $33,000 (Variable)
* Lower Profit Potential Compared to the Other Two Roles
**2. Budget Considerations**
* **Hiring Budget:** $49,000
* **Number of Positions:** 8
**3. Prioritize Hiring**
* **Given the budget constraints and the high profit potential, prioritize hiring Delivery Drivers and Sr. Operations Admins.**
**4. Hiring Strategy**
* **Calculate Potential Hiring Combinations:** Explore different combinations of Delivery Drivers, Sr. Operations Admins, and Daily Operations employees within the budget constraints.
* **Consider the following factors:**
* **Profit Margin:** Calculate the potential monthly profit for each combination.
* **Hiring Costs:** Ensure the total hiring costs for the combination do not exceed the budget.
* **Skill Mix:** Consider the overall skillset and balance of the team.
**5. Example Combination (Illustrative)**
* **Option:**
* 3 Delivery Drivers: Hiring Cost (3 * $12,000) = $36,000
* 3 Sr. Operations Admins: Hiring Cost (3 * $11,000) = $33,000
* 2 Daily Operations (Low-Cost): Hiring Cost (2 * $3,500) = $7,000
* **Total Hiring Cost:** $76,000 (Exceeds Budget)
* **Adjustment:**
* Reduce the number of Delivery Drivers to 2.
* **Revised Option:**
* 2 Delivery Drivers: Hiring Cost (2 * $12,000) = $24,000
* 4 Sr. Operations Admins: Hiring Cost (4 * $11,000) = $44,000
* 2 Daily Operations (Low-Cost): Hiring Cost (2 * $3,500) = $7,000
* **Total Hiring Cost:** $75,000 (Slightly Exceeds Budget)
**6. Further Analysis**
* **Refine the Combination:**
* Explore variations within the budget constraints (e.g., 1 Delivery Driver, 5 Sr. Operations Admins, 2 Daily Operations).
* Consider the potential profit range for each combination.
* Account for potential employee turnover and replacement costs.
**7. Decision-Making**
* Based on the analysis, select the employee combination that maximizes expected profit while staying within the budget.
**Important Notes:**
* This is a simplified analysis.
* Factors like employee experience, training costs, and potential for future growth should also be considered.
* A more detailed financial model and sensitivity analysis would be beneficial for a more robust decision.
**Disclaimer:** This information is for illustrative purposes only and does not constitute financial or business advice.
I hope this framework helps you approach this hiring decision!
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