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Second drive-up window be installed

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First American Bank of Rapid City has one outside drive-up teller. It takes the teller an average of 4 minutes to serve a bank customer. Customers arrive at the drive-up window at a rate of 12 per hour. The bank operations officer is currently analyzing the possibility of adding a second drive-up window, at an annual cost of $20,000. It is assumed that arriving cars would be equally divided between both windows. The operations officer estimates that each minute's reduction in customer waiting time would increase the bank's revenue by $2,000 annually. Should the second drive-up window be installed?

Reference no: EM132549709

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