Question: A Virginia county is considering whether to pay $ 5 0 , 0 0 0 per year to lease a DMV transfer facility in a

A Virginia county is considering whether to pay $50,000 per year to lease a DMV transfer facility in a prime location near Washington, D.C. They estimate it will cost $50 per applicant to process the paperwork at this new location. The county is paid a $75 commission for each new applicant they process. If the holding area at this new location has design and effective capacities of 10,000 and 7,500 applicants processed annually, respectively, and 5,000 applicants will be processed per year, what will be the utilization of the holding area?

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