Fast Food Terminals III After firing cashiers to install ...

[krzymel]

Fast Food Terminals III After firing cashiers to install touchscreens for patrons to place orders, Taco Casa determined that their average cost per touchscreen order was 0.65 . After determining that the average compensation cost per human mediated order was 0.60 per order, they revert back to human order takers. Then why did the realized average cost per order with humans come in at 0.70?

Question 2

Owners of a parking lot are deciding whether or not to add more parking spaces to the lot. The owners should increase parking spaces as long as:
 a. LRMR=LRMC
 b. LRMR>LRMC
 c. LRMR d. None of the above

[bookworm410]

Answer to Question 1

Compensation costs represent the bulk of the employee costs, but not all of them. Low wage employees can have conflicts with customers that reduces orders, employees can incur costs if they get injured on the job or if they break equipment, and some employees steal while machines typically do not. A full analysis would incorporate these potentially hidden costs.

Answer to Question 2

b

[krzymel]

Gracias!

[dantucker]

Excellent