Reference no: EM133114018

Question - Seneca Cafeteria Operations (SCO) formerly collected from each customer as they reached the end of the food line. A cashier, seated at a cash register, rang up the amount (displayed on a digital screen) and collected the money. Management changed the system, and now a clerk at the end of the line operates a calculator/printer machine and gives each customer a paper tape. The machine accumulates a running total internally. The customer presents the tape at the cash register on the way out and pays. The SCO manager justified the direct cost of $10,000 annually for the added salary and $500 for the new machine by pointing out that 4 more people each weekday (Monday to Friday) and 10 more people on weekends could be served. The food line now moves faster and customers are happier. The average meal costs $12. The total cost of food and service can be considered to be fixed. What is the first year net benefit of the change?