MTMax store wants to reduce the waiting time of its customers, based on the gathered information, customers arrive at the store every 10 mins and it takes 5 mins to serve the orders. The manager wants to use an online website but they need to prepare P25,000 for the initial cost and P2500 for the annual maintenance cost, P500 per month for the additional tax and the customer will increase to 15 customers per hour and service time will be reduced to 3 minutes. Another alternative is to buy another frying machine which is worth P35,000, P800 per month for the additional manpower and P1 500 per month for the additional cost such as oil and electricity, and the customers will also increase to 10 customers per hour. The estimated worth of each minute saved is P20000. Which option should MTMax store pursue? 

Answer rating: 100% (QA)

The MTMax store should pursue the option of buying another frying machine The option of buying anoth... View the full answer