If clerk cost is $30 per hour and customer waiting time represents a cost of $20 per hour,how many clerks can be justified on a cost basis?
A)2
B)3
C)4
D)5
E)6

Question

If clerk cost is $30 per hour and customer waiting time represents a cost of $20 per hour,how many clerks can be justified on a cost basis?
A)2 
B)3 
C)4 
D)5 
E)6

Quizplus · Accepted Answer

The optimal number of clerks is determined by balancing the cost of clerks with the cost of customer waiting time. More clerks reduce waiting time but increase clerk costs. The correct number is where the total cost is minimized.

If Clerk Cost Is $30 Per Hour and Customer Waiting