solution

Question 2A. Game is a busy centre for residents in East
Legon and its sourrounding community. Assume that 2 customers arrive
every 12 minutes and 3 customers are served every 15 minutes and that
currently, there is only one cashier. 2 a) Determine the average waiting time in minutes before service begins. AP(5)b) Advice the management the proportion of the time that a customer has to wait.AP(5)(B). Management perceives that the waiting time computed in (ii) above is not acceptable and is faced with two options.Management
can either employ an assistant for the cashier or open a second cash
machine. The former, if implemented, will enable 4 requests to be served
every 15 minutes and the assistant will receive a monthly salary of
GH?160. The latter, if implemented will improve the arrival rate to 1
customer every 12 minutes.However, it requires an initial
capital outlay of GH?3000 and the cashier who will operate the cash
machine will receive a monthly salary of GH?250. The shop avoids a loss
in sales of GH?80 per month for each minute that average customer
waiting time is reduced.c) Calculate the financial gain to
Game under option 1 and advice management on the option. AN(7) Calculate
the financial gain to Game under option 2, assuming the initial capital
outlay issunk cost and advice management on this option. AN(8) TOTAL [25