Fast Food Terminals II

question 43

Essay

Fast Food Terminals II
Taco Casa is considering installing touch screen terminals for patrons to place their food orders.A terminal can typically accommodate the placement of 15 orders each hour while a human can process 20 orders each hour.If employee costs are $7.50/hour in wages and $4.50/hour in taxes,benefits and insurance,what is the per order opportunity cost of a touch screen?

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, used to cover fixed costs and contribute to profit.

Machine Hour

A unit of measure representing the operation of a machine for one hour, often used in cost accounting.

Floor Deodoriser

A cleaning agent specifically designed to eliminate odors and freshen floors in residential or commercial spaces.

Feasible Solutions

Solutions that meet all the constraints of a particular problem, considered acceptable and implementable.