A restaurant that has a limited capacity of 30 people. The restaurant has an entrance fee...

A restaurant that has a limited capacity of 30 people. The restaurant has an entrance fee of $5/person. People arrive at this restaurant at a rate of 4/hour. The time each person spends in the restaurant follows an exponential distribution with rate ?. Suppose it costs 3? per hour for this restaurant to provide service to the customers. Find ? that maximizes the benefit of this restaurant.

Expert Solution

orchestra answered 2 years ago

A neighborhood restaurant opens for lunch only and has a menu limited to five meals. The...

A neighborhood restaurant opens for lunch only and has a menu limited to five meals. The history of each menu item relative to its percentage of total sales, selling price (SP), and variable costs (VC) are shown in the following table: Menu Item SP VC SR% Food 1 $15.00 $7.75 16% Food 2 12.95 7.50 20 Food 3 11.00 5.50 22 Food 4 8.95 2.85 14 Food 5 9.95 6.50 8 Total variable cost of beverages averages 55 percent. The...

Your mother operates a small restaurant but has limited knowledge of how to arrive at a...

Your mother operates a small restaurant but has limited knowledge of how to arrive at a selling price that would cover her cost and yield a desired profit. Based on your knowledge of calculating menu selling prices; you have decided to assist your mother with a strategy that would effectively cover her cost and earn a profit which is in line with her objectives of achieving 40% profit at the end of the year. You are required to Discuss appropriate...

When a company has a limited resource, it should apply additional capacity of that resource to...

When a company has a limited resource, it should apply additional capacity of that resource to providing more units of the product or service that has the: Select one: a. highest contribution margin per unit of that limited resource. b. highest gross proﬁt. c. highest contribution margin. d. highest selling price. XYZ Company manufactures ultra sound equipment. Based on past experience, XYZ has found that total annual repair and maintenance cost can be represented by the following formula: total annual...

a) Ghana Agro Food Processing Company Limited has spare capacity to process poultry feed and is...

a) Ghana Agro Food Processing Company Limited has spare capacity to process poultry feed and is considering offering a service to the Greater Accra Poultry Farmers Association. To aid deliberations concerned with what rate should be quoted when offering the service, the Poultry Manager has asked for your assistance in analysing the Poultry department’s fixed and variable costs. From her departmental records, the poultry manager has extracted the following schedule of cost information. Month poultry costs Metric tons (MT) of...

The entrance of a rehabilitation center is at the elevation of 1.0 m and has a...

The entrance of a rehabilitation center is at the elevation of 1.0 m and has a wheelchair ramp that is inclined 30 degrees relative to the horizontal. The mass of an average patient and the accompanying wheelchair is 110 kg, and the coefficient of static friction μs between the wheelchair wheels and the ramp is 0.60. Each wheel of the wheelchair has a mass of 3.0 kg and a radius of 0.40 m and can be modeled as a hoop...

restaurant has 5 tables available. People arrive at times of a Poisson process with rate of...

restaurant has 5 tables available. People arrive at times of a Poisson process with rate of 6 per hour. The amount of time for a person to eat has an exponential distribution with a mean of 30 minutes. People who arrive when all 5 tables are full turn around and leave without eating at the restaurant. In the long run, what fraction of time is the restaurant full?

“Legislation is drawn up by draftsmen, and a draftsman’s capacity to anticipate the future is limited....

“Legislation is drawn up by draftsmen, and a draftsman’s capacity to anticipate the future is limited. He may not foresee some future possibility, or overlook a possible misinterpretation of the original intentions of the legislation.” Considering the above statement, discuss the rules of Statutory Interpretation. (1500 words)

The Statements of Financial Position for Lexington Limited as at 30 June 2019 and 30 June...

The Statements of Financial Position for Lexington Limited as at 30 June 2019 and 30 June 2020 are provided below: Lexington Ltd Statement of Financial Position as at 30 June 2020 2019 Assets $ $ Cash at bank 64,580 38,400 Accounts Receivable 82,800 35,000 Inventory 112,500 102,850 Prepaid Advertising 14,400 14,000 Machinery 310,000 282,500 Less: Accumulated Depreciation (50,000) (52,000) Total Assets $534,280 $420,750 Liabilities Accounts Payable 157,000 59,300 Dividends payable 15,000 - Wages payable 20,700 25,000 Loan 125,000 130,000 Total...

The Statements of Financial Position for Kiwi Limited as at 30 June 2019 and 30 June...

The Statements of Financial Position for Kiwi Limited as at 30 June 2019 and 30 June 2020 are provided below: Kiwi Limited Statement of Financial Position as at 30 June 2019 2020 Assets $ $ Cash at Bank 68,000 56,000 Accounts Receivable 121,000 139,000 Inventory 44,000 41,000 Land 241,000 241,000 Plant and Machinery 319,000 414,000 Less: Accumulated Depreciation (10,000) (89,000) Total Assets $783,000 $802,000 Liabilities Accounts Payable 55,000 54,000 Tax Payable 16,000 23,000 Loan 536,000 362,000 Total Liabilities $607,000 $439,000...

2.a For McDonalds - What determine capacity levels at a fast food restaurant such as McDonalds?...

2.a For McDonalds - What determine capacity levels at a fast food restaurant such as McDonalds? In the long term (5 to 10 years), what are the capacity issues facing a fast food restaurant such as McDonalds?

Question