Refer to the Agan Interior Design situation in Problem 11. Agan’s management would like to evaluate two alternatives:
• Use one consultant with an average service time of 8 minutes per customer.
• Expand to two consultants, each of whom has an average service time of 10 minutes per customer.
If the consultants are paid $16 per hour and the customer waiting time is valued at $25 per hour for waiting time prior to service, should Agan expand to the two-consultant system? Explain.