Question: A bank is considering adding another teller window. Currently, the bank has 3 teller windows. On average, 27 customers per hour use the bank

A bank is considering adding another teller window. Currently, the bank has

A bank is considering adding another teller window. Currently, the bank has 3 teller windows. On average, 27 customers per hour use the bank teller windows. Each teller can serve an average of 10 customers per hour. The bank manager has estimated that it costs $70 per hour per teller; the cost of customer waiting (floor space, etc) is $100 per hour. Assume the bank manager has decided to add one more teller. Round all intermediate calculations to three decimal places, and your final answers to whole dollars. The cost of capacity with 4 tellers will be , and the cost of customer waiting with 4 tellers will be. Multiple Choice $351; $280 $280; $351 $210; $1005 $280; $81

Step by Step Solution

★★★★★

3.26 Rating (144 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The right answer is B The cost of capacity ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

A bank is considering issuing $20 million in short-term deposits for a term of 30 days. Currently annual interest rates are 0.21 percent on such deposits, however the bank expects rates on comparable...

A bank is considering the use of options to deal with a serious funding cost problem. Deposit interest rates have been rising for six months, currently averaging 5 percent, and are expected to climb...

A bank is considering two securities: a 30-year Treasury bond yielding 7 percent and a 30-year municipal bond yielding 5 percent. If the banks tax rate is 30 percent, which bond offers the higher tax...

Perez Containers Corporation is considering implementing a JIT production system. The new system would reduce current average inventory levels of $4,000,000 by 75%, but it would require a much...

Maranantha Box Corporation is considering adding another machine for the manufacture of corrugated cardboard. The machine would cost $700,000. It would have an estimated life of 6 years and no...

Boyer and Kubek, architects, have been using a simplified costing system in which all professional labor costs are included in a single direct cost category, professional labor; and all overhead...

Consider SnowDreams from S8-3. Assume that SnowDreams reputation has diminished and other resorts in the vicinity are charging only $65 per lift ticket. SnowDreams has become a price-taker and wont...

Padong Remanufacturing rebuilds spot welders for manufacturers. The following budgeted cost data for 2012 are available for Padong: The company wants a $35 profit margin per hour of labour and a 25%...

Maid-Magic Ltd. provides household cleaning services for residential customers. With Claire Kenley as the manager for the past 10 years, the company has experienced steady growth by providing...

Refer to the budgets prepared in Exercise E22-24. Determine the cost per kit to manufacture the model airplane kits. Grady projects sales of 100, 150, 100, and 200 kits for the next four quarters....

Orange, Inc. buys a sandwich-making machine for $35,000 on April 1, this year. The machine is used in Orange's business. As of December 31, this year, the machine is classified as: a. A capital...

Bill Gate Company incurred costs for materials and conversion in the amount of P 45,000 and P 4,860 respectively. As of the same date, the work in process inventory in units of P 6,000 is 40%...

Budget cash receipts for the months of January, February, and March. Budgeted sales, all on account: November $ 65,000 December January February March 60,000 82,000 70,000 90,000 Collection of...

Given the following encoding rule for each letter: n 010 110 k 101 Suppose Alice want to encrypt and send "ok" (110 101)_to Bob using a one-time pad 101 111, so Bob will get the ciphertext as 011...

1.The standard price per unit is; Material 6 kg @Rp750; Labor 10 Hours @Rp480; BOP on the basis of 70% of Working Hours with a rate per working hour @Rp250 for variable BOP and fixed BOP budgeted is...

Developer Company is constructing a 2-Tower residential condominium. Tower 1 sells 20 units while tower 2 sells 30 units. Both towers will share in the common amenities and occupy the same land area....

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Fixed Cost per...

A consultant is beginning work on three projects. The expected profits from these projects are $50,000, $72,000, and $40,000. The associated standard deviations are $10,000, $12,000, and $9,000....

Develop an inventory control plan for EC to use as the basis for its upcoming year. Justify your reasons for choosing a particular type (or combination of types) of inventory system(s). On the basis...

For each of the three generic strategies (i.e., cost leadership, differentiation, and focus), which of the four competitive uses of information is most powerful?

For the data in exercise 14.4, use an a of 0.1 and a b of 0.2 to make a forecast for July and August. Calculate the MAD for your January through June forecasts.

This problem is designed to illustrate how the relative proportions of fixed and variable costs affect a firms net income when the sales volume changes. Two hypothetical firms, Hi-Tech and Lo-Tech,...

A college ski club is planning a weekend package for its members. The members will each be charged $270. For a group of 15 or more, the club can purchase a two-day downhill pass and two nights...

In the year just ended, a small appliance manufacturer sold its griddle at the wholesale price of $37.50. The unit variable costs were $13.25, and the monthly fixed costs were $5600. a. If unit...