average number of callers waiting, Cost Accounting

Radovilsky's Department Store in Haywood, California, maintains a successful catalog sales department in which a clerk takes orders by telephone. If the clerk is occupied on one line, incoming phone calls to the catalog department are answered automatically by a recording machine and asked to wait. As soon as the clerk is free, the party who has waited the longest is transferred and serviced first. Calls come in at a rate of about 12 per hour. The clerk can take an order in an average of 4 minutes. Calls tend to follow a Poisson distribution, and service times tend to be exponential.
The cost of the clerk is $10 per hour, but because of lost goodwill and sales, Radovilsky's loses about $25 per hour of customer time spent waiting for the clerk to take an order.

a) What is the average time that catalog customers must wait before their calls are transferred to the order clerk?
b) What is the average number of callers waiting to place an order?
c) Radovilsky's is considering adding a second clerk to take calls. The store's cost would be the same $10 per hour. Should it hire another clerk? Explain your decision


Posted Date: 3/15/2013 8:58:35 AM | Location : United States

Related Discussions:- average number of callers waiting, Assignment Help, Ask Question on average number of callers waiting, Get Answer, Expert's Help, average number of callers waiting Discussions

Write discussion on average number of callers waiting
Your posts are moderated
Related Questions
Extracts from P Co''s records for last month are as follows: BUDGET ACTUAL PRODUCTION 7,000 UNITS 7,200 UNITS Direct Material $42,000 $42,912 Calculate

for the year ended31st dec 2008manufacturing accountshowing costof row material,manufacturing expenses and the cost of goods manufactured& tradind account where stock of row mater

1) Define Elasticity.  If you have a product where elasticity is less than one, what does that mean?  Is it good, bad for the firm? 2) Why will firms not shut down as soon as th

Semi Variable Costs Are costs along with both a fixed and variable cost component? The fixed component is such portion that is constant irrespective of the level of activity.

Amazing acrobatics performs acrobatics in stadiums around the world. The average show sells about 1,000 tickets at $60 per ticket. Each show requires a team of 45 highly trained sp

Question 1 Discuss the various elements of cost Question 2 Explain the various stages involved in the distribution of factory overheads Question 3 Define activity-based

Weighted Average Method - Work in Progress While this method is employed, all costs of production are considered in assigning costs to inventory. The method puts together open

QUESTION 1 Job costing Create a spreadsheet solution to the following problem. Follow the template provided. Play the Job cost podcasts and work through the example problem in tho