The chattanooga furniture store gets an average of 72 72 customers per shift. marilyn helms, the manager, wants to calculate whether she should hire 1 1 , 2 2 , 3 3 , or 4 4 salespeople. she has determined that average waiting times will be 10 10 minutes with one salesperson, 6 6 minutes with two salespeople, 3 3 minutes with three salespeople, and 2 2 minutes with four salespeople. she has estimated the cost per minute that customers wait at $ 1 1. the cost per salesperson per shift (including fringe benefits) is $ 80 80.

Question

Business

Rey Small

23 June, 12:35

The chattanooga furniture store gets an average of 72 72 customers per shift. marilyn helms, the manager, wants to calculate whether she should hire 1 1 , 2 2 , 3 3 , or 4 4 salespeople. she has determined that average waiting times will be 10 10 minutes with one salesperson, 6 6 minutes with two salespeople, 3 3 minutes with three salespeople, and 2 2 minutes with four salespeople. she has estimated the cost per minute that customers wait at $ 1 1. the cost per salesperson per shift (including fringe benefits) is $ 80 80.

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Answers (1)

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Ramiro Blanchard · Answer 1

3 Sales people

Explanation:

The calculation of total cost per shift is shown below:-

1st sales 2nd sales 3rd sales 4th sales

person person person person

Average Waiting

Time 10 minutes 6 minutes 3 minutes 2 minutes

Total waiting

Cost $720 $432 $216 $144

(72 * $1 * 10) (72 * $1 * 6) (72 * $1 * 3) (72 * $1 * 2)

Add: Total labor

Cost 80 $160 $240 $320

($80 * 1) ($80 * 2) ($80 * 3) ($80 * 4)

Total cost $800 $592 $456 $464

Thus, 3 servers have the lowest cost, so that the overall cost per change with 3 Sales people is chosen.