Question

Two people in the bindery stop and talk for 6 minutes about what their plans are for the weekend while they are on the clock. During this time, nothing is produced. Their time is valued at $50.00 per hour each. How much did this conversation cost the company?

Answer 1

The conversation took 6 minutes, which is 0.1 hours (since there are 60 minutes in an hour and 6/60 = 0.1).

The two people are valued at $50.00 per hour each, so together they are valued at $100.00 per hour.

Therefore, the cost of the conversation is:

Cost = Time x Hourly rate

Cost = 0.1 x $100.00

Cost = $10.00

So the conversation cost the company $10.00.