The KVS Pharmacy is open from 10:00 A.M. to 8:00 P.M.,and it receives 200 calls per day for delivery orders. It coststhe pharmacy $25 to send out its cars to make deliveries.The pharmacy estimates that each minute a customerspends waiting for their order costs the pharmacy $0.20 inlost sales. a. How frequently should KVS send out its delivery carseach day? Indicate the total daily cost of deliveries. b. If a car could only carry six orders how often would de-liveries be made and what would be the cost?
The KVS Pharmacy is open from 10:00 A.M. to 8:00 P.M.,and it receives 200 calls per day for delivery orders. It coststhe pharmacy $25 to send out its cars to make deliveries.The pharmacy estimates that each minute a customerspends waiting for their order costs the pharmacy $0.20 inlost sales. a. How frequently should KVS send out its delivery carseach day? Indicate the total daily cost of deliveries. b. If a car could only carry six orders how often would de-liveries be made and what would be the cost?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The KVS Pharmacy is open from 10:00 A.M. to 8:00 P.M.,
and it receives 200 calls per day for delivery orders. It costs
the pharmacy $25 to send out its cars to make deliveries.
The pharmacy estimates that each minute a customer
spends waiting for their order costs the pharmacy $0.20 in
lost sales.
a. How frequently should KVS send out its delivery cars
each day? Indicate the total daily cost of deliveries.
b. If a car could only carry six orders how often would de-
liveries be made and what would be the cost?
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