Compute the average hourly cost of operating stand

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Allison will also be selling cones at the market this summer. She will sell them at a small counter located in one of the market buildings. Fortunately, the place is air-conditioned but can only accommodate a maximum of 6 customers inside, including the one being served. In addition to the 25 ¢ per minute per customer wait cost, owners see a blocked customer as a loss they estimate at $ 5 per customer.

48 clients per hour and Allison can whip up a cone in about one minute. Allison is paid $14 per hour. Queue is first come first served.

Compute the average hourly cost of operating her stand. (Salary + waiting + blocking)

Reference no: EM132954810

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