The owner of an amusement park has decided to open a second entry booth and hire another employee to service customers entering the park. Customers arrive at the rate of 20 per hour and will wait in a single line until one of the two employees is available to provide service. The average service time of both employees is 2 min to provide service. The arrival rate follows Poisson distribution, and the service time follows a negative exponential distribution. It is estimated that the cost of customer waiting time associated with dissatisfied customers and loss of goodwill is $20 per hour. The employee at the service booth is paid $10 an hour. Determine the total expected cost per day for the waiting line system. Assume total hours of operation as 10 hr per day.
A. $226.67
B. $245.67
C. $216.67
D. $234.21
C. $216.67
You might also like to view...
The SEC in 2000 adopted Regulation FD, which ________
A) is designed to increase selective disclosure B) requires companies to pull back on wide dissemination of any material announcement C) requires issuance of a news release within 48 hours of any information that may have slipped out to an analyst D) requires companies to widely disseminate any material announcement
Identify and explain the key components of a merchandiser's net income.
What will be an ideal response?
Jocasta contracts to provide lawn-mowing services to Kevin for $140 per month. Jocasta cannot transfer this duty
A. under any circumstances. B. without continuing to be potentially liable. C. without Kevin's consent. D. without paying Kevin at least one monthly fee.
Andre formed a corporation and owns all the stock. He contributed property with a FMV of $10,000 and a basis of $7,000 and he received $1,000 cash from the corporation. Andre's taxable gain is:
A. $10,000. B. $1,000. C. $3,000. D. $0.