A Company Is Concerned About the Number of Customers Who

question 35

Multiple Choice

A company is concerned about the number of customers who have to wait for service in its customer service department.Assume the rate at which customers are serviced is 12 per hour.Using the infinite queuing notion for the models presented in the textbook, which of the following is the mean time between arrivals?

• A)12 minutes
• B)6 minutes
• C)2 minutes
• D)1 minute
• E)None of these

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Definitions:

Selling Prices

The amount of money charged to a customer for a product or service, often influenced by cost, demand, and market competition.

Break-even Point

The point at which total revenue equals total costs and expenses, meaning the business makes neither a profit nor a loss.

Margin of Safety

The difference between actual or expected sales and the sales level at which the business incurs no profit or loss.

Break-even Point

The point at which total costs and total revenue are equal, meaning there is no net loss or gain, and the business is just covering its costs.