Circle Electric Supply Is Considering Opening a Second Service Counter

question 36

Essay

Circle Electric Supply is considering opening a second service counter to better serve the electrical contractor customers. The arrival rate is 10 per hour. The service rate is 14 per hour. If the cost of waiting is $30 and the cost of each service counter is $22 per hour, then should the second counter be opened?

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Definitions:

Payable on Demand

A term indicating that a payment must be made by the debtor immediately upon the creditor's request.

Definite Time

Pertains to a specific, clearly defined period or moment at which something is scheduled to occur or be completed.

Revised Article 3

An updated part of the Uniform Commercial Code dealing with negotiable instruments, such as checks.

Payable to Order

Refers to a financial instrument that is made payable to the specific order of a person or an entity.