cesA real estate agent is considering changing her land line phone plan. Theinvolve a monthly service charge of $20. Plan A has a cost of $.38 a minute for daytime calls and $.17 a minute for eveningcalls. Plan B has a charge of $.47 a minute for daytime calls and $.14 a minute for evening calls. Plan C has a flat rate of $75with 275 minutes of calls allowed per month and a charge of $.36 per minute beyond that, day or evening.a. Determine the total charge under each plan for this case: 120 minutes of day calls and 40 minutes of evening calls in amonth. (Do not round intermediate calculations. Round your answer to 2 decimal places.)Cost for Plan ACost for Plan BCost for Plan C$$$72.4082.0095.00b. If the agent will only use the service for daytime calls, over what range of call minutes will each plan be optimal? (Roundeach answer to the nearest whole number. Include the indifference point itself in each answer.)Plan A is optimal from zero tominutes. Plan C is optimal from82 minutes onward.

A real estate agent has 3 plans to choose from - Plan A, B and C:

Answered: A real estate agent is considering…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter12: Queueing Models

Section: Chapter Questions

Problem 59P

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Please do not give solution in image format thanku Bob's candle factory is considering three different manufacturing options. Option A uses hand labor with fixed costs of $10,000 and variable costs of $2.75/candle. Option B uses a combination of hand and automation with fixed costs of $15,000 and variable costs of $1.10/candle. Option C is highly automated with fixed costs of $20,000 and variable costs of $0.75/candle. a. If demand for Bob's candles is 2500, which option should he pick, and what is the cost? b. If demand for Bob's candles is 4500 which option should he pick, and what is the cost?
Winchester Hospital is a privately owned institution. The hospital is at full capacity, but the governing board would like to see an increase in revenue. They’ve tasked you, the hospital administrator, with finding ways to accomplish this. If you are able to raise revenue, the board will provide you with a significant year-end bonus. Currently, 50% of Winchester’s rooms can be converted from having one bed to having two beds, allowing for more patients to be admitted. Doctors, nurses, and other hospital staff are firmly against this move, especially because additional hiring is not planned. These stakeholders make up the vast majority of the hospital workforce. Evaluate this situation using both the utilitarianism and individualistic (ethical egoism) approaches. Define each approach and describe how each would resolve the decision. What would you expect the outcome of each decision to be? Support your conclusions with facts from the situation.
Alma has decided to purchase a cell phone with Internetaccess and must choose a rate plan. The “occasional-user”plan is $0.50/minute, regardless of how many minutes ofair time are used. The “frequent-user” plan charges a flatrate of $55/month for 70 minutes of air time plus $0.33/minute for any time over 70 minutes. The “execu-tive” plan charges a flat fee of $75 per month for 100 minutes of air time plus $0.25/minute over 100 minutes. Inthe interest of simplicity, Alma has decided to go with theoccasional-user plan to start with and then upgrade as shesees fit at a later date.a. How much air time per month would Alma need touse before she upgrades from the occasional-user planto the frequent-user plan?b. At what usage rate should she switch from thefrequent-user plan to the executive plan?
Generate as many ideas as you can for additional services orimprovements in service delivery for (a) banking, (b) highereducation, and (c) health care.
De Mar, a plumbing, heating, and air-conditioning companylocated in Fresno, California, has a simple but powerful product strategy: Solve the customer’s problem no matter what, solvethe problem when the customer needs it solved, and make sure thecustomer feels good when you leave . De Mar offers guaranteed,same-day service for customers requiring it. The company provides 24-hour-a-day, 7-day-a-week service at no extra charge forcustomers whose air conditioning dies on a hot summer Sundayor whose toilet overflows at 2:30 A.M. As assistant service coordinator Janie Walter puts it: “We will be there to fix your A/C onthe fourth of July, and it’s not a penny extra. When our competitors won’t get out of bed, we’ll be there!”De Mar guarantees the price of a job to the penny before thework begins. Whereas most competitors guarantee their work for30 days, De Mar guarantees all parts and labor for one year. Thecompany assesses no travel charge because “it’s not fair to chargecustomers for…
Explain the concept of Revenue focus and Yield management concept in Services. Identify at least 3 services, where you have experienced the yield management concepts being applied.
An executive conference center has the physical ability to handle 1,100 participants. However, conference management personnel believe that only 1,000 participants can be handled effectively for most events. The last event, although forecasted to have 1,000 participants, resulted in the attendance of only 950 participants. What are the utilization and efficiency of the conference facility?
Integrative ExerciseCost System Choices, Budgeting, and Variance Analyses for Sacred Heart Hospital The Two Cost Systems Sacred Heart Hospital (SHH) faces skyrocketing nursing costs, all of which relate to its two biggest nursing service lines—the Emergency Room (ER) and the Operating Room (OR). SHH's current cost system assigns total nursing costs to the ER and OR based on the number of patients serviced by each line. Total hospital annual nursing costs for these two lines are expected to equal $300,000. The table below shows expected patient volume for both lines. Measure ER OR Total Number of patients (ER visits or OR surgeries) 1,000 1,000 2,000 Number of vital signs checks 2,000 4,000 6,000 Number of nursing hours 10,000 5,000 15,000 Required: 1. Using the current cost system, calculate the hospital-wide rate based on number of patients. $fill in the blank 1 per patient 2. Calculate the amount of nursing costs that the current cost…
A real estate agent is considering changing her land line phone plan. There are three plans to choose from, all of which involve a monthly service charge of $20. Plan A has a cost of $.45 a minute for daytime calls and $.20 a minute for evening calls. Plan B has a charge of $.55 a minute for daytime calls and $.15 a minute for evening calls. Plan C has a flat rate of $80 with 200 minutes of calls allowed per month and a charge of $.40 per minute beyond that, day or evening. a. Determine the total charge under each plan for this case: 120 minutes of day calls and 40 minutes of evening calls in a month. b. If the agent will only use the service for daytime calls, over what range of call minutes will each plan be optimal? (Round your answer to the nearest whole number.) c. Suppose that the agent expects both daytime and evening calls. At what point (i.e., percentage of total call minutes used for daytime calls) would she be indifferent between plans A and B? (Do not round intermediate…
Estimate the cost of a 0.75 million gallon per day (MGD) induced-draft packed tower for air-stripping trihalomethanes from drinking water if the cost for a 2.9-MGD tower is $153,200. The exponent in the cost-capacity equation is 0.47. The cost of a 0.75 million gallon per day induced-draft packed tower is $
Point of indifference percent daytime minutes
A real estate agent is considering changing her land line phone plan. There are three plans to choose from, all of which involve a monthly service charge of $20. Plan A has a cost of $.38 a minute for daytime calls and $.17 a minute for evening calls. Plan B has a charge of $.47 a minute for daytime calls and $.14 a minute for evening calls. Plan C has a flat rate of $75 with 275 minutes of calls allowed per month and a charge of $.36 per minute beyond that, day or evening. a. Determine the total charge under each plan for this case: 120 minutes of day calls and 40 minutes of evening calls in a month. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Cost for Plan A Cost for Plan B Cost for Plan C b. If the agent will only use the service for daytime calls, over what range of call minutes will each plan be optimal? (Round each answer to the nearest whole number. Include the indifference point itself in each answer.) Plan A is optimal from zero to minutes.…

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