Using the phone at her desk, Sylvia in Corporate Sales consistently generates a very steady $1500 per hour in gross revenue for her firm. After all of her firm’s costs have been subtracted, Sylvia’s sales amount to $100 in bottom line (net) profits every 15 minutes. At 10:00 a.m. one day the desk phone Sylvia uses to make her sales calls breaks. Without the phone Sylvia cannot make any sales. Assume that Sylvia’s regular schedule is to begin making sales calls at 8:00 a.m. Assume she works the phone for four hours, takes a one hour lunch exactly at noon, and then returns promptly to her desk for four more hours of afternoon sales. Sylvia loves her work and the broken phone is keeping her from it. If necessary she will try to repair the phone herself. Which of the following options would be in the best interest of Sylvia’s firm to remedy the broken phone problem?
A = Use Ed’s Phone Repair Shop down the street. Ed can replace Sylvia’s phone by 10:30 a.m. Ed will charge the firm $500.
B = Assign Sylvia to a different project until her phone can be replaced with one from the firm’s current inventory. Replacing the phone is handled by the night shift.
C = Authorize Sylvia to buy a new phone during her lunch hour for $75 knowing she can plug it in and have it working within a few minutes after she gets back to her desk at 1:00 p.m.
D = Ask Sylvia to try to repair her phone herself. She will probably complete the repair by 2:00 p.m.; or maybe later.
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