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julsineya [31]
1 year ago
8

Burrito King (a new fast-food franchise opening up nationwide) has successfully automated burrito production for its drive-up fa

st-food establishments. The Burro-Master 9000 requires a constant 30 seconds to produce a batch of burritos. It has been estimated that customers will arrive at the drive-up window according to a Poisson distribution at an average of one every 45 seconds. To help determine the amount of space needed for the line at the drive-up window
A. What is the average line length (in cars)?

B. What is the average number of cars in the system (both in line and at the window)?

C. What is the expected average time in the system?
Business
1 answer:
bezimeni [28]1 year ago
3 0

Answer:

(A)0.6600 (B) 1.325 (C) 0.997 or 1 minute

Explanation:

Solution

Given that:

The constant rate = 30 seconds

The arrival rate according to Poisson distribution is = 45 seconds

Now,

(A) We solve for the average length line of cars

The formula is given below:

Lq = λ²/ 2μ ( μ -λ)

Here,

λ = this is the mean time of arrival rate

μ = This is the mean service rate

Thus we compute for the mean time arrival rate which is given below:

The mean arrival rate λ = arrival rate/ 60 seconds

= 60/45

= 1.33 customer per minute

Then we solve for the means service rate which is given below

The mean service rate μ = 60 seconds/ mean rate

= 60/30 = 2 customer per minute

We will now solve for the average line length in cars which is shown below:

Lq = λ²/ 2μ ( μ -λ)

Lq = 1.33²/2*2 (2-1.33)

Lq = 1.7689/4 (0.67)

Lq = 1.7689/2.68

Lq = 0.6600

Therefore the average length in line for cars is 0.6600 cars

(B) We solve for the average number of cars in the system

Ls =Lq + λ /μ

Ls =0.600 + 1.33/2

Ls =0.6600 + 0.665

Ls = 1.325

(C) Finally we need to find the expected average time in the system which is shown below:

Ws = Ls/λ

Ws= 1.325/1.33 = 0.997 or 1.00

The expected time average  in the system is 0.997 or 1.00 minutes.

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Following are the transactions of Green Company. May 1 The company billed a customer $3,400 in consulting revenue for sustainabl
Kisachek [45]

Answer:

Accounts Receivable 3,400

    Consulting Revenue 3,400

Supplies   1,000

    Accounts Payable   1,000

Cash     2,400

   Accounts Receivable 2,400

Accounts Payable  1,000

   Cash                           1,000

Utilities expense   800

  Cash                               800

Explanation:

The services are earned and were only billed not collected. So the company should reocgnize the receivable

The purchase of supplies is con credit, the company will recognize a liability

When the company collects from the account, it will decrease and cash will increase

When paying the supplier, their cash decrease and the liability is write-off

The utilities expense are cost of the period, so are recognize as expense.

3 0
2 years ago
Julia started a cake decorating business last year. Unfortunately it failed quickly. She is convinced that she lacked the necess
Alex73 [517]

Answer:

C) undercapitalization

Explanation:

Clearly, Julia's cake business was undercapitalized, since she failed in the bare start. The undercapitalization issue is often associated with financial beginnings, when having the right sources of capital is crucial. Startups face significant initial costs and therefore need secure capital to cover them.

A cash flow issue is more common with businesses that are already up and running, but face challenges regarding paying debtors.

5 0
2 years ago
If D1 = $1.25, g (which is constant) = 5.5%, and P0 = $40, what is the stock's expected total return for the coming year?
trapecia [35]

Answer:

The expected totar return is: 8,625%

Explanation:

Total return, when measuring performance, is the actual rate of return of an investment or a pool of investments over a given evaluation period. Total return includes interest, capital gains, dividends and distributions realized over a given period of time. Total return is the amount of value an investor earns from a security over a specific period, typically one year.

The formula for the total stock return is the appreciation in the price plus any dividends paid, divided by the original price of the stock.

Total stock return= [(P1-P0)+D]/P0

P0: initial stock price

P1: Ending stock price (Period 1)

D0: dividend

In this case, we do not have P1. So we have to use an alternate version of the Gordon Growth Model. The GGM is mainly applied to value mature companies that are expected to grow at the same rate forever.

​      

P= D1/(r-g)​    

​    

where:

P=Current Stock Price

g=Constant growth rate in perpetuity

expected for the dividends

r=Constant cost of equity capital for that

company (or rate of return)

D1=Value of the next year’s dividends

​    

By moving terms and isolating "r" we achieve the following formula:

r= D1/P+g

r=1,25/40+0,055= 8,625%

3 0
2 years ago
Mikes Inc. has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.85 Direct labor $ 3.60 Var
marshall27 [118]

Answer:

Marginal cost: $13.70

Missing question:

Additional cost from increasing their output by one unit.

Explanation:

The company will inccur only the variable cost as the fixed cost are within the relevant range:

Direct materials $ 6.85

Direct labor $ 3.60

Variable manufacturing overhead $ 1.25

Sales commissions $ 1.50

Variable administrative expense $ 0.50

Total variable cost: $13.70

producing an additional unit will genrate marginal cost for $13.70

4 0
1 year ago
Nakama Corporation is considering investing in a project that would have a 4 year expected useful life. The company would need t
Fed [463]

Answer:

We have to assume specific tax rate to come up with the income tax expenses. Let assume the tax rate is 30%.

The income tax expense in year 2: $53,400.

Explanation:

We have:

Depreciation expenses of the equipment in the second year = (Initial cost - salvage value) / Useful life = (168,000 - 0)/4 = $42,000.

Profit before tax in year 2 = Sales in year 2 - operating expenses in year 2 - Depreciation expenses in year 2 = 520,000 - 300,000 - 42,000 = $178,000.

Income tax expense in year 2 = Profit before tax in year 2 x tax rate = 178,000 x 30% = $53,400.

So, the answer is $53,400.

5 0
2 years ago
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