The Owner of an Amusement Park Has Decided to Open

question 50

Multiple Choice

The owner of an amusement park has decided to open a second entry booth and hire another employee to service customers entering the park.Customers arrive at the rate of 20 per hour and will wait in a single line until one of the two employees is available to provide service.The average service time of both employees is 2 minutes to provide service.The arrival rate follows Poisson distribution,and the service time follows a negative exponential distribution.It is estimated that the cost of customer waiting time associated with dissatisfied customers and loss of goodwill is $20 per hour.The employee at the service booth is paid $10 an hour.Determine the total expected cost per day for the waiting line system.Assume total hours of operation as 10 hours per day.

• A)$226.67
• B)$245.67
• C)$216.67
• D)$234.21

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Definitions:

Owner's Equity

The residual interest in the assets of a company after deducting liabilities, representing what the owners truly own.

Revenue Recognition

The accounting principle dictating the conditions under which revenue is recognized and can be reported in financial statements.

Fraud

A deliberate deception to secure unfair or unlawful gain, often financial in nature. It can involve various schemes, including embezzlement, identity theft, and forgery.

Internationally

Pertains to activities, transactions, or operations that occur between or involve more than one country.