A language school generates €800 in revenue per employee. Its profit is calculated using the formula: Profit = (€800 - w) × N, where 'w' is the wage and 'N' is the number of employees. The school currently employs 20 people at a wage of €500. If the school changes its model to employ 15 people at a wage of €600, what will be the impact on its total profit?

Evaluating Wage Policies

Calculating Maximum Wage for a Target Profit

A language school generates €800 in revenue per employee and calculates its profit using the formula: Profit = (800 - w) × N, where 'w' is the wage and 'N' is the number of employees. According to this model, if the school increases the wage by 10% and simultaneously decreases the number of employees by 10%, its total profit will remain unchanged.

A language school's profit is determined by the formula: Profit = (€800 - w) × N, where €800 is the revenue per employee, w is the wage, and N is the number of employees. Match each employment scenario with its corresponding total profit.

Strategic Decision-Making in a Simplified Business Model

A language school generates €800 in revenue per employee. The school's profit is calculated as Profit = (800 - w) × N, where 'w' is the wage and 'N' is the number of employees. If the school wants to achieve a total profit of €6,000 while employing 30 people, the wage per employee must be €____.

Profit Maximization with a Fixed Wage Budget

A language school's profit is determined by the formula: Profit = (€800 - w) × N, where €800 is the revenue per employee, w is the wage, and N is the number of employees. The school is comparing two operational plans, Plan A and Plan B, which are designed to yield the exact same total profit.

• Plan A: Employs 40 people at a wage of €500.
• Plan B: Employs 30 people at a wage of €400.

Which statement correctly analyzes the profitability of these two plans?

Isoprofit Curve in the Wage-Employment Model