To minimize the total expected hourly cost

Assignment Help Accounting Basics

Reference no: EM131106313

At the Franklin Post Office, patrons wait in a single line for the first open window. On average, 100 patrons enter the post office per hour, and each window can serve an average of 45 patrons per hour. The post office estimates a cost of $0.10 for each minute a patron waits in line and believes that it costs $20 per hour to keep a window open. Interarrival times and service times are exponential.

a. To minimize the total expected hourly cost, how many windows should be open?

b. If the post office's goal is to ensure that at most 5% of all patrons will spend more than five minutes in line, how many windows should be open?

Reference no: EM131106313

Questions Cloud

The manager of a large group of employees : The manager of a large group of employees must decide whether she needs another photocopying machine. The cost of a machine is $40 per eight-hour day regardless of whether the machine is in use.

How would bad debts be dealt with in a cash budgeting sense : In his preliminary cash budget, Barnes has assumed that all sales are collected and, thus, that SKI has no bad debts. Is this realistic? If not, how would bad debts be dealt with in a cash budgeting sense?

Frontenac national bank agrees to modify the terms : Frontenac National Bank agrees to modify the terms of the note, indicating that Halvor does not have to pay any interest on the note over the 3-year period.

Does ski''s working capital policy seem appropriate : How can we distinguish between a relaxed but rational working capital policy and a situation where a firm has a large amount of current assets simply because it is inefficient? Does SKI's working capital policy seem appropriate?

To minimize the total expected hourly cost : At the Franklin Post Office, patrons wait in a single line for the first open window. On average, 100 patrons enter the post office per hour, and each window can serve an average of 45 patrons per hour.

Does ski seem to be following a relaxed moderate or restrict : He wants everyone to think about the pros and cons of changing each type of current asset and the way changes would interact to affect profits and EVA. Based on the data in Table IC 15-1, does SKI seem to be following a relaxed, moderate, or restrict..

Appropriate appraisal of ethical nature of situation : What other information or reference points would help you to make an appropriate appraisal of the ethical nature of the situation?

What is the accounting nature of this transaction : Discuss whether generally accepted accounting principles provide the proper information useful to managers and investors in this situation.

What history would be necessary to collect from the patient : Consider what physical exams and diagnostic tests would be appropriate to gather more information about the patient's condition. How would the results be used to make a diagnosis?

User Account

All Pages