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anzhelika [568]
4 years ago
6

Travel-Cheap agency is planning to open a ticket desk in a new shopping plaza, staffed by one ticket agent. It is estimated that

requests for tickets and information will average 15 per hour, and requests will have a Poisson distribution. Service time is assumed to be exponentially distributed. Previous experience with similar satellite operations suggests that mean service time should average about three minutes per request. Determine each of the following:
a. System utilization
b. Percent of time the server (agent) will be idle
c. The expected number of customers waiting to be served
d. The average time customers will spend in the system
e. The probability of zero customers in the system
f. The probability of four customers in the system
Business
1 answer:
anastassius [24]4 years ago
7 0

Answer:

(a) 75% (b) 25% (c) 2.25 customers (d) 12 minutes (e) 0.25 (f)0.237

Explanation:

Solution

Given that:

The Arrival rate at Poisson distribution = 15 per hour = λ

The Service rate at exponential distribution = 20 per hour = μ

(a) System utilization = λ/μ = 15 / 20 = 0.75 = 75%

(b) The Probability of zero requests in server = 1 - λ/μ = 1 - 0.75 = 0.25

or

The percentage of time server will be idle = 25%

(c)The expected number of customers waiting to be served = Average number of customers in line = λ^2/μ (μ-λ ) = 225 /20(20-15) = 45 /20 = 2.25

Therefore, it is expected that on an average, 2.25 customers are waiting in line to get served.

(d)The average time customers will spend in system = 1/(μ-λ )

=1/(20 - 15) = 1/5 hours = 12 minutes

(e)The probability of zero customer in system = 1 -λ/μ = 1 - 0.75 = 0.25

(f) The probability of more than 4 customers in the system = (λ/μ)^ 4+1

=  (15/20)5 = 0.237

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Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $300
andreev551 [17]

Answer:

below

Explanation:

$385,544,590

6 0
3 years ago
A competitive firm has been selling its output for $20 per unit and has been maximizing its profit, which is positive. Then, the
Lina20 [59]

Answer: c. marginal revenue is higher than it was previously.

Explanation:

Marginal revenue is higher than it was previously.

Marginal Revenue is the additional revenue that is generated by selling one more unit, In a Competitive market Firms are price takers meaning the can only adjust quantity and not the price.

The marginal Revenue equals to the price of a good or service. When Price increases from $20 to $25 ,the Marginal Revenue will be $25 which is higher than it was previously

7 0
3 years ago
1. ABC Inc. showed the following operating budget for the next year. Sales $2,100,000 Fixed cost $650,000 Total variable cost 35
Bezzdna [24]

Solution:

(a) Total contribution margin = Sales - Total variable cost

= 1,320,000-111,000

= $1,209,000

Contribution Rate = Contribution margin / Sales

= 1,209,000/1,320,000

= 91.59090909%

(b) Break even sales = Fixed costs / Contribution rate

= 567,000/91.59090909%

= $619,057

(c) Break even volume in units = Break even / Selling price per unit

= 619,057/125

= 4,953 ( Rounded to near whole number)

8 0
4 years ago
Cullumber Company took a physical inventory on December 31 and determined that goods costing $514,000 were on hand. Not included
Licemer1 [7]

Answer:

The amount that Cullumber should report as its December 31 inventory is $543000.

Explanation:

FOB shipping point means the purchaser gains title to the merchandise at the shipping point, so when Pelzer shipped the goods, they belonged to Stallman.

**FOB destination means the seller maintains title until the merchandise reaches its destination, so since the goods have not reached their destination, the goods still belonged to Stallman

inventory on december 31 = inventory on december 31 + goods in transit purchased FOB shipping point + goods in transit sold FOB destintion

                                            = $514,000 + $7,000 + $22,000

                                            = $543000

Therefore, The amount that Cullumber should report as its December 31 inventory is $543000.

4 0
3 years ago
Simon Corporation manufactures hydraulic valves. The product life of a valve is 4 years. Target average profit margin for Simon
Luda [366]

Answer:

Allowable unit cost of a hydraulic valve using the target costing model = 52.4

Explanation:

Given that:

Simon Corporation manufactures hydraulic valves. The product life of a valve is 4 years.

Target average profit margin for Simon 20.00%

The company does not expect the manufacturing cost to vary over the next 4 years

Estimated sales volume and the unit selling price of the valve for the next 4 years is given below:

Year                  Sales volume (units)                   Unit selling price

Year 1                       40,000                                 $80.00

Year 2                      50,000                                 $75.00

Year 3                     35,000                                   $50.00

Year 4                      25,000                                  $45.00

The objective is to determine the allowable unit cost of a hydraulic valve using the target costing model.

The Cost for each unit selling price can be calculated as:

= unit selling price - (Target average profit margin × unit selling price)

For Year 1

=  $80.00- (0.2 × $80.00)

= $80.00 - $16.00

= $64.00

For Year 2

= $75.00 - ( 0.2 × $75.00)

= $75.00 - ( $15.00)

= $60.00

Year 3

= $50.00 - (0.2× $50.00)

= $50.00 - $10.00

= $40.00

Year 4

= $45.00 - (0.2 × $45.00)

=$45.00 - $9.00

= $36.00

Year       Sales volume    Unit                Cost          Cost per Unit

                (units)             selling price  

Year 1       40,000          $80.00          $64.00       $2560000

Year 2      50,000          $75.00          $60.00       $3000000

Year 3      35,000          $50.00          $40.00        $1400000

Year 4       25,000          $45.00         $36.00        $900000

Total:        150000                                                    $7860000

Allowable unit cost = Total cost/Total number of unit cost

Allowable unit cost = $7860000/150000

Allowable unit cost = 52.4

6 0
3 years ago
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