Question

6. Individual Problems 21-6

A convenience store manager earns a base salary plus a small bonus of $160 for each of ten different possible monthly milestones he meets. If the manager meets a milestone, the full bonus is paid. However, if the manager falls even one penny short, none of that bonus is paid. Suppose each of the ten milestones requires 32 hours of effort to meet, and that the manager has 160 hours of effort to allocate to work each month.

In order to maximize the total monthly bonus, the manager should allocate ______ hours toward meeting each of (2,3,4,5,6,7,8)  milestones and _____ hours toward meeting each of the remaining (2,3,4,5,6)   sales milestones.

Answer 1

For 10 different milestone bonus earned by manager = $160

10 milestones required time to meet the bonus = 32hours

Hours of effort for the work allocation each month = 160hours

The manager need to allocate 32 hours for meeting each of 5 milestones (= 160hours/32hours ) and zero hours ( the balance hours will be zero ) toward meeting each of the remaining 5 milestones ( the remaining milestones i.e. 10-5 ).

32 hours, 5 milestones; 0 hours, 5 milestones.

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