Nearly New (NN) NN sells second-hand computers. NN is owned by Nathan who is a sole trader. Nathan is a fully trained and qualified computer engineer. Nathan buys broken computers from large electrical retailers and repairs them. The repaired computers are then sold through NN's website. Nathan uses a cost-based pricing strategy and adds 50% to the cost of the computer and the cost of repairs. Nathan currently works alone and has no employees. Nathan has recently purchased, for $2000, a batch of 20 laptop computers all of which have broken screens. Nathan thinks that each will cost $50 to repair and he hopes to make a profit from selling them. One of Nathan's biggest problems is cash flow. Nathan pays for all of his inventory in cash and he must spend time repairing the computers before he can sell them. Customers expect a range of computers to choose from and expect next day delivery. This means that most of Nathan's working capital is tied up in inventory. Sometimes Nathan is offered large batches of computers and he cannot buy them because he does not have the cash available. Nathan wants to recruit an employee to allow him to increase the production at NN. He has interviewed two potential employees and he has made some notes about their suitability (see Table 2). Table 2: Nathan's notes on the potential employees | Name | Katy | Sahdat | | :-------------------- | :-------- | :-------- | | Current income per year | $20000 | $25000 | | Industry experience | Two years as a computer repairer for a large electrical retailer | Ten years as a sole trader repairing computers | | Qualifications | University degree in computer engineering | No formal qualifications | | Age | 23 | 55 | | Skills | • Repairing computers <br> • Being organised | • Repairing computers <br> • Managing employees <br> • Communication with customers |