Question

This is a simple efficiency model for a service provider. They work 8 hrs / day and 5 days per week. Clients receive 45 minutes each of the provider's time Gross revenue per client is $60. The service provider is compensated at 28% of revenue generated.

The owner wishes to reduce slack to increase profitability. However the provider will demand greater compensation when they are worked harder.

Decrease Slack by 0.25% per step, down to 7.0%

Answer 1

The subject of this question is Business and it involves a simple efficiency model for a service provider. The goal is to reduce slack while maintaining profitability.

Step-by-step explanation:

The subject of this question is Business. It involves a simple efficiency model for a service provider and explores the relationship between revenue, compensation, and slack. The goal is to reduce slack while maintaining profitability. To do this, the owner must find a balance between increasing workload and compensating the provider accordingly.