Bridgeview Salon Has a Variable Demand

question 77

Multiple Choice

Bridgeview salon has a variable demand.The daily demand ranges from 150-190 customers a day with an average of 5 services purchased.The average daily demand is 170 customers.The salon operates 12 hours each day,and each service takes an average of 4 minutes.(a) Calculate the average waiting time in minutes,and (b) the cycle time for a service order.(c) Bridgeview management is considering extending the hours of the salon to 15 hour days,what affect will this change have on average waiting times?

• A)34 minutes; (b)38 minutes; (c)The average wait time would decrease to 6.2 minutes.
• B)28 minutes; (b)33 minutes; (c)The average waiting time would not change.
• C)24 minutes; (b)29 minutes; (c)The average waiting time would decrease by 7 minutes.
• D)30 minutes; (b)33 minutes; (c)The average waiting time would increase by 4 minutes.
• E)22 minutes; (b)25 minutes; (c)There is not enough data to answer this question.

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Definitions:

Outstanding Checks

Checks that have been issued and recorded in an entity's accounting system but have not yet been cashed or cleared by the bank.

Bank Statement Adjustment

The process of modifying the balance shown in a bank statement to match the adjusted balance in the ledger accounts, usually due to timing differences in recording transactions.

Company Books Adjustment

The process of making changes to the financial records to correct errors or update accounting information.

Deposit In Transit

A banking term that refers to checks or other forms of payment that have been received and recorded by a company, but not yet processed or credited by the bank.