A fast-food restaurant has a drive-through window and during peak lunch times ca
ID: 413809 • Letter: A
Question
A fast-food restaurant has a drive-through window and during peak lunch times can handle a maximum of 70 cars per hour with one person taking orders, assembling them, and acting as cashier. The average sale per order is $12.00. A proposal has been made to add two workers and divide the tasks among the three. One will take orders, the second will assemble them, and the third will act as cashier. With this system it is estimated that 85 cars per hour can be serviced. Assume that prevailing minimum wage is $8.40. Use productivity arguments to recommend whether or not to change the current system. Round your answers to two decimal places. Productivity for system 1: Productivity for system 2: With the additional two workers, productivity . Thus, it is to change the current system.
Explanation / Answer
Sysytem 1 :
Total revenue earned per hour = $ 12 / car x 70 cars = $840
Wage paid to 1 worker in 1 hour = $ 8.40
Thus , productivity per hour = Total revenue earned / Wages paid = 840 / 8.4 = 100
PRODUCTIVITY FOR SYSTEM 1 = 100
System 2 :
Total revenue earned per hour = $12 / order x 85 = $1020
Wages paid to 3 workers in one hour = $8.4 x 3 = $25.2
Thus, productivity for system 2 = 1020 / 25.2 = 40.47
PRODUCTIVITY FOR SYSTEM 2 WITH TWO ADDITIONAL WORKERS = 40.47
Since, Productivity for System 1 > Productivity for System 2
IT IS NOT ADVISABLE TO CHANGE THE SYSTEM
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