SCENARIO 5-12 Phone Calls Arrive at the Rate of 50 Per Hour

question 107

Short Answer

SCENARIO 5-12
Phone calls arrive at the rate of 50 per hour at the reservation desk for Queen City Airways.The desk manager has asked you for an analysis of the call rates and probabilities to better understand the operation and determine if more call desk workers are needed.
-Using Scenario 5-12,What is the probability of receiving exactly three calls in a 6-minute period?

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Definitions:

Contribution Margin

The amount of revenue remaining after deducting variable costs, used to cover fixed costs and generate profit.

Variable Cost

Expenses that vary depending on the amount of products or services a company generates.

Contribution

The amount of money or resources that an individual or entity provides towards a particular project, investment, or cause.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the proportion of fixed to variable costs.