Question

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.

Answer 1

3 Sales people

Step-by-step 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.