Q6: 13. The First American Bank of Rapid City has one outsidedrive-up teller. It takes the teller an average of 4 minutes to serve abank customer. Customers arrive at the drive-up window at a rateof 12hour. The bank operations officer is currently analyzingthe possibility of adding a second drive-up window, at an annualcost of $20,000. It is assumed that arriving cars would be equallyperdivided between both windows. The operations officer estimatesthat each minute's reduction in customer waiting time wouldincrease the bank's revenue by $2,000 annually. Should the seconddrive-up window be installed?Q7:23. A vending machine at City Airport dispenses hot coffee, hotloteor hot tea in a constant service time of 20 seconds.

Current average serving time = 4 minutes Service Rate per hour =12$/ hr Cost of new drive up…

Q6: 13. The First American Bank of Rapid City has one outside drive-up teller. It takes the teller an average of 4 minutes to serve a bank customer. Customers arrive at the drive-up window at a rate of 12 per hour. The bank operations officer is currently analyzing the possibility of adding a second drive-up window, at an annual cost of $20,000. It is assumed that arriving cars would be equally divided between both windows. The operations officer estimates that each minute's reduction in customer waiting time would increase the bank's revenue by $2,000 annually. Should the second drive-up window be installed? coffee bot

Q6: 13. The First American Bank of Rapid City has one outside drive-up teller. It takes the teller an average of 4 minutes to serve a bank customer. Customers arrive at the drive-up window at a rate of 12 per hour. The bank operations officer is currently analyzing the possibility of adding a second drive-up window, at an annual cost of $20,000. It is assumed that arriving cars would be equally divided between both windows. The operations officer estimates that each minute's reduction in customer waiting time would increase the bank's revenue by $2,000 annually. Should the second drive-up window be installed? coffee bot

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

Q6: 13. The First American Bank of Rapid City has one outside
drive-up teller. It takes the teller an average of 4 minutes to serve a
bank customer. Customers arrive at the drive-up window at a rate
of 12
hour. The bank operations officer is currently analyzing
the possibility of adding a second drive-up window, at an annual
cost of $20,000. It is assumed that arriving cars would be equally
per
divided between both windows. The operations officer estimates
that each minute's reduction in customer waiting time would
increase the bank's revenue by $2,000 annually. Should the second
drive-up window be installed?
Q7:23. A vending machine at City Airport dispenses hot coffee, hot
lote
or hot tea in a constant service time of 20 seconds.

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